Key Takeaways
- ARB’s price broke out of a bullish pennant pattern on the 4-hour chart, supported by positive BBP and rising CMF.
- The upcoming YAPYO presale, hosted on Arbitrum for the InfoFi Protocol, has significantly boosted ARB’s volume.
- The daily chart shows ARB testing the upper trendline of a falling channel, suggesting potential price targets of $0.46.
ARB, the native token of the Ethereum layer-2 scaling solution Arbitrum, has emerged as the top gainer among the top 100 cryptos.
In the last 24 hours, Arbitrum’s price has increased by 20% amid rising demand for the altcoin.
During the early trading hours of Sunday, June 29, ARB traded for less than $0.30. As of this writing, however, its market value has jumped to $0.36.
This marks a notable recovery for a token that plunged to a new all-time low two months ago in April.
This analysis breaks down the catalysts behind ARB’s strong rebound and explores what could be next for its price action as July begins.
More Capital Flows Into Arbitrum
On the 4-hour chart, Arbitrum’s price experienced this hike after it broke out of a bullish pennant. The pattern began over the weekend as ARB spiked from $0.26 to $0.32, forming the flagpole.
Later, the price consolidated between $0.30 and $0.32 (the flag), before eventually breaking out of the pattern’s upper trendline.
Amid this move, CCN observed that the Bull Bear Power (BBP) has remained in the positive region, indicating that buyers are dominant.
Try Our Recommended Crypto Exchanges
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
DISCLAIMER:
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.
DISCLAIMER:
Don’t invest unless you’re prepared to lose all the money you invest.
The Chaikin Money Flow (CMF) has also climbed above the zero signal line in line with this sign. The rise in the CMF reading indicates notable accumulation.
Should this trend continue, ARB’s price will likely rise to the upper resistance level at $0.40. However, that will only happen if bulls defend the $0.40 support.
The YAPYO Effect
Beyond the technical outlook, the YAPYO presale, set to launch today , has emerged as a key driver behind the recent surge in ARB demand.
YAPYO will serve as the native token of Yapyo, a new DeFi project gaining traction within the ecosystem.
Since Arbitrum is hosting the presale, positive sentiment might continue to rise. Therefore, if the event proves successful, ARB’s price could benefit further, potentially breaking into higher resistance levels.
Interestingly, this has also reflected in the trading volume. Before the hype around YAPYO, ARB’s volume was less than $150 million.
Today, that figure is close to $700 million. Should Arbitrum’s price continue to increase, the rising volume could strengthen the upswing, possibly pushing the market value higher.
ARB Price Analysis: Still Bullish
Regarding the short-term outlook, the daily chart shows that ARB’s price is flirting with the upper trendline of a falling channel. The Relative Strength Index (RSI) has risen above the neutral line.
The rise in the RSI reading indicates bullish momentum around the token. In addition, the green line of the Supertrend is below the altcoin’s price, indicating strong support for the cryptocurrency.
If this trend continues, Arbitrum’s price could rise to $0.46 at the 0.786 Fibonacci level. If sustained, this could drive the token’s value to $0.62 at the 0.618 Fibonacci level.
On the flip side, if bears ensure that ARB fails to break above the upper trendline mentioned above, this trend could change. In that scenario, Arbitrum’s price might decline to $0.24.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Was this Article helpful?
