Buy Arbitrum Now? ARB Price Displays Relative Strength
May 16 2023 - 5:40AM
NEWSBTC
The token of the layer-2 solution Arbitrum, ARB, is one of the
best-performing cryptocurrencies within the top 100 by market cap
over the past seven days. With a gain of 8.5% despite the heavy
drawdown in the broader crypto market, the Arbitrum token records
the fifth highest price gain over the last week. Arbitrum Token
Shows Relative Strength Looking at the ARB / BTC chart (2-hour)
shows that the Arbitrum token is one of the few altcoins that has
recently shown strength against Bitcoin. If BTC sees a rise towards
$30,000, it is generally advisable to look for the altcoins that
show relative strength at the moment and ARB is definitely one of
them. In the 2-hour chart, ARB/BTC is writing higher highs and
higher lows since Monday, May 8. Currently, ARB/BTC needs to break
above the 0.00004477 level to continue the trend. If this is
successful, stronger resistance at 0.00004620 can be expected. But,
a successful breach would be an extremely bullish signal. The
4-hour chart of ARB/USD shows that the price was once again
rejected at the 23.8% Fibonacci level at $1.22. This resistance is
crucial for ARB at the moment. In order to maintain the uptrend,
the price level must be cleared, otherwise a renewed fall towards
$1.05 could be on the cards. Related Reading: Arbitrum (ARB) Surges
Nearly 10% In The Past 24 Hours, Here’s Why If a breakout succeeds,
the zone between $1.30 and the 38.2% Fibonacci at $1.33 would come
into focus. Strong resistance can also be expected at $1.42, where
the 50% Fibonacci retracement level is located. Renowned Crypto
Traders Are Bullish On ARB One of the analysts who is bullish on
ARB is popular crypto trader @DaanCrypto. The analyst points to the
high on-chain transaction volume on Arbitrum, where the layer-2
ranks only behind Ethereum and BSC. Moreover, it is interesting to
note that the fully diluted market caps of ARB, MATIC, SOL, OP and
AVAX are relatively close to each other, according to the analyst,
while the circulating supply is quite different. According to Daan,
ARB is still undervalued or less overvalued compared to the other
protocols, such as Optimism (OP). Related Reading: Arbitrum (ARB):
Is A Major Price Rally Coming Now? One reason, in addition to ARB’s
strong fundamentals, are the scheduled token unlocks: “This is
important to note when you’re investing for the longer term. OP for
example will be getting some bigger unlocks throughout the year
while ARB won’t get any until March 2024”, says Daan, who
concluded, “the unlocking schedule & adoption was a reason for
me to open this pair trade between ARB & OP.” $ARB / $OP Pair
Trade going strong. Well on it's way to my target of $ARB being 2x
the Fully Diluted Valuation of $OP. https://t.co/uJSKilhc0u
pic.twitter.com/z635BpCztr — Daan Crypto Trades (@DaanCrypto) May
15, 2023 Andrew Kang, co-founder of Mechanism Capital, also shares
this view. In mid-April, the notorious altcoin whale wrote that
“Arbitrum is the fastest growing blue chip chain not yet valued at
blue chip status and will rerate to be top of the alt L1/L2 stack.”
His reasoning: When it comes to dApps with real value and
innovation, Arbitrum dApps are at the forefront. “While these
bullish conditions sustain this year, FDV [Fully Diluted Value] is
a meme. Especially considering there are no major unlocks until
next year,” added Kang. Featured image from soliditydeveloper.com,
chart from TradingView.com
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