Dec 1, 2024
6thTrade
Arbitrum (ARB) has displayed a strong bullish trend, gaining 78.80% over the past month, with notable increases of 15.20% on the weekly and 8.08% on the daily charts. This positive momentum has been supported by favorable market sentiment and rising accumulation interest.
Netflow Surge Signals Accumulation
ARB recorded the highest chain netflow in the last 24 hours, surpassing Ethereum and Solana with $42.6 million in net inflows. Positive netflow typically indicates accumulation and suggests potential upward price movement, as it reflects increased user activity and liquidity.
In addition, after four consecutive days of positive exchange netflow totaling $17.04 million, indicating selling pressure, there has been a recent shift. Over the past 48 hours, negative netflow has been recorded, showing that market participants are now holding onto their ARB. This change, coupled with a decline in large-holder transaction volume, suggests that selling pressure is easing, which could allow the price to continue its upward momentum.
Key Resistance Ahead: $2.4 in Sight
As ARB approaches key resistance, traders should watch for potential hurdles. The In/Out of the Money Around Price (IOMAP) indicator shows a significant supply zone between $0.96 and $0.98, where 69.5 million ARB tokens are held across over 27,000 addresses. This zone aligns with a resistance level of $0.983, where ARB has previously struggled to break through.
If ARB manages to overcome this resistance and maintain its bullish momentum, it could target $2.4, a level with substantial liquidity concentration. However, traders should be cautious of the selling pressure at key levels and monitor the coin's ability to maintain momentum.
Conclusion
With rising netflows and easing selling pressure, ARB is well-positioned for further gains. However, the token must clear significant resistance near $0.98 before targeting the $2.4 mark. Traders should closely monitor these levels for signs of sustained upward movement.
