TLDR
Arbitrum (ARB) is trading at $0.72 within a descending triangle pattern, with analysts projecting a potential 46% rally if it breaks above $0.78 resistance
Technical indicators show bearish short-term momentum with RSI at 40.57 and price below the Ichimoku Cloud
On-chain metrics indicate declining participation with negative network growth (-1.10%) and reduced profitable wallets (-2.09%)
Current support level sits at $0.6890, with key resistance at $0.78 and potential upside targets at $1.0690
Trading volume stands at $606.7M with a market cap of $3.05B and 4.3B circulating supply
The cryptocurrency market is closely watching Arbitrum (ARB) as it trades within a well-defined descending triangle pattern, with technical analysts suggesting a potential 46% price increase if certain conditions are met.
ARB is currently trading at $0.72, showing a 3.51% decline in the past 24 hours. The token’s market capitalization stands at $3.05 billion, with a circulating supply of 4.3 billion ARB tokens. Daily trading volume remains steady at $606.7 million.
The descending triangle pattern, a technical formation closely monitored by traders, has formed over recent weeks. This pattern typically signals a period of consolidation before a potential breakout. The upper resistance line of the triangle sits at $0.78, while the lower support level rests at $0.6890.
Technical indicators present a mixed picture for ARB’s short-term prospects. The Relative Strength Index (RSI) reads 40.57, indicating neither oversold nor overbought conditions but suggesting somewhat bearish momentum. The token trades below the Ichimoku Cloud, traditionally interpreted as a bearish signal.
#Arbitrum $ARB looks prime for a 46% upswing if it breaks out of this descending triangle! pic.twitter.com/V4dZ1a9hAo
— Ali (@ali_charts) January 21, 2025
On-chain metrics reveal declining network activity. Net Network Growth has dropped to -1.10%, suggesting reduced new participant entry into the ecosystem. The “In the Money” metric shows a 2.09% decrease, indicating fewer profitable wallet addresses.
Large transaction activity has remained subdued, with 234 transactions recorded in the past 24 hours. This represents a slight decrease from the seven-day high of 238 transactions, potentially indicating reduced interest from larger investors.
The token faces immediate resistance at $0.78, where previous price movements have been rejected multiple times. Fibonacci retracement levels suggest additional resistance points at $0.8661 (0.618) and $0.9077 (0.786).
Support levels are currently established at $0.6890, which serves as a critical price floor. Below this, traders identify $0.6500 as the next psychological support level that could catch any potential downturn.
Arbitrum Price on CoinGecko
Trading volume patterns show consistent but unremarkable activity, with no notable spikes in recent days. This steady volume suggests a period of price consolidation rather than decisive movement in either direction.
The Tenkan-sen and Kijun-sen lines, currently at $0.7426 and $0.8032 respectively, are acting as resistance levels. These technical indicators from the Ichimoku system suggest overhead pressure on the price.
Analyst projections remain cautiously optimistic, with some technical traders identifying potential upside targets at $1.0690, $1.3053, and $1.5804, contingent on a break above the descending triangle’s resistance.
Recent market data shows ARB’s weekly performance includes a 3.24% decline, contributing to the overall bearish sentiment in the short term. However, this drawdown aligns with broader market movements rather than ARB-specific factors.
Price action within the triangle formation shows decreasing volatility, typical of such patterns before a decisive move. Trading ranges have narrowed consistently over recent weeks.
Order book data reveals concentrated support around the $0.6890 level, with notable bid walls suggesting strong buying interest at this price point.
The token’s correlation with broader market movements has remained relatively stable, suggesting that any breakout might depend more on ARB-specific factors than general market conditions.
Recent trading patterns show increased accumulation at lower price levels, though volume remains below average compared to previous months.
The post Arbitrum (ARB) Price : Arbitrum Shows Signs of 46% Upside Potential appeared first on Blockonomi.