Arbitrum (ARB) Pumps 27% Daily: The Start of a Bigger Move?
Surprisingly or not, Arbitrum’s ARB leads the entire top 100 club today (September 1) as the strongest performer.
Some analysts expect further gains ahead, but a certain technical indicator suggests a short-term correction is also quite possible.
The 3-Month Peak
ARB experienced a sudden 27% daily increase and currently trades at around $0.11 (per CoinGecko), the highest point since late May. Its market capitalization surpassed $730 million, making it the 86th-largest cryptocurrency.
The double-digit increase is rather surprising given the slight overall decline in the market over the past day, and the most likely catalyst fueling the rally appears to be Robinhood.
Arbitrum’s team revealed that Robinhood Chain generated more than $1 million in fees in the last 24 hours. “As a dedicated Arbitrum chain, 10% of the protocol revenue flows back to the Arbitrum ecosystem,” they added.
According to X user Master of Crypto, ARB is nearing the end of a long consolidation after trading inside a clear symmetrical triangle, with resistance around $0.1495 and $0.1729.
“If ARB breaks above the triangle, the next move could target $0.1495 first, followed by $0.1729. A clean breakout could signal the start of a bigger trend move,” the analyst predicted.
For their part, X user OxNeena claimed that ARB is breaking out. In their view, holding above the key support just above $0.08 could open the door to further gains toward $0.12, $0.14, and $0.16.
Pullback Ahead?
Despite the aforementioned pump, ARB remains 98% below its all-time high. The token began trading in the spring of 2023 when its price briefly skyrocketed above $5.
The asset’s Relative Strength Index (RSI) suggests that narrowing the gap to the historical peak may have to wait a bit longer. The technical analysis tool, which measures the speed and magnitude of recent price changes, ranges from 0 to 100, with anything above 70 signaling a potential move south due to overbought conditions.
On the other hand, ratios below 30 hint that ARB has entered oversold territory and could be due for a resurgence. Currently, the RSI stands at around 73, reinforcing the bearish perspective.
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