Arbitrum (ARB) is up for a surge but selling pressure is trying to dislodge the token from its upward trajectory. The digital asset has gained 23.13% in the last 30 days to recover from a significant drop.
However, this momentum has been thwarted in the last 24 hours leading up to November 21, as it could only register a 1.37% surge.
Although the crypto market is upbeat about Arbitrum forming a positive pattern, there are concerns about its bullish curve.
Analysts like Alex Clay revealed that ARB has formed a falling wedge pattern in the price chart which is a typical bullish trend with some price consolidation before the upward momentum breakout. Previous studies of this pattern suggest an 82.24% Hain is likely.
Now, Arbitrum has broken out of this pattern, setting sights on resistance zones at $1.250, $1.830, and $3.650. The upward trend suggested by this breakout is validated by the coin's RSI, which has formed a rounding bottom as it entered a positive territory. This means that ARB is poised to surge further and is trading in favourable zones.
Analysts are betting on Arbitrum's layer 2 solutions as Ethereum (ETH) is recovering. However, Layer 2 tokens like ARB which heavily depend on Ethereum will be influenced by ETH recovery.
Ethereum started its recovery trajectory earlier last week by attracting institutional investors' interest which resulted in ETH spot ETF inflow to reach $515.17 million, the largest single-week inflow so far. This means crypto investors are gathering the token.
If this ETH upward trajectory continues it will pull up ARB price. However, Arbitrum's on chain trading activities indicate that buyers are holding long positions which are driving the market. There's a considerable difference between the futures and spot prices of Arbitrum.
Funding Rate of ARB was found to be 0.0192% which stands for bullish sentiment, indicating further gains for the token.
However, there's evidence that traders are transferring their ARB tokens to exchanges as seen in the weekly and daily positive Exchange Netflow of Arbitrum. This generally happens before crypto investors start selling tokens.
A whopping $1.95 million worth of ARB has been transferred to crypto exchanges over the last 7 days. $1.44 million was moved in 24 hours leading up to November 21. This trend is likely to trigger a downward pressure on Arbitrum making the bullish trend stall.
As of November 22, Arbitrum was up 16.71% in the last 24 hours to trade at $0.7827 with a 143.21% spike in its trading volume which stood at $1.30 billion and the market cap rose to $3.21 billion.