Arbitrum’s recent rally signals a strong bullish trend in the cryptocurrency market, with total value locked (TVL) reaching $5 billion. This increase not only reflects investor confidence, but also signals the possibility of future price increases as traders monitor key resistance levels.
According to COINOTAG, “The golden cross pattern is a strong indicator that a significant upward move is possible if the price of ARB breaks above the $1.2 resistance level.”
Arbitrum’s TVL reaching $5 billion signals a strong bull trend as ARB targets critical resistance levels. So, will the momentum continue?
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Arbitrum has successfully overcome a long rectangular consolidation period that lasted over two years. This breakout has created renewed optimism among traders, while also suggesting a retest of previous resistance levels. If ARB breaks the critical $1.2 level, projections call for a rally to $2.2, indicating significant growth for investors.
Traders are becoming increasingly optimistic, closely monitoring the resistance level. A sustained breakout is critical to confirming the bull trend. The golden crossover formation, in particular, supports this positive outlook and suggests that further upward movement is possible. Arbitrum is currently trading at $1.07, down 7.15% in the last 24 hours. However, the Relative Strength Index (RSI) is indicating strong bullish momentum at 62.3. This suggests that buyers remain resolute despite the slight price correction.
This continuity in RSI emphasizes that investor confidence in ARB remains strong despite price fluctuations and indicates a strong bullish outlook. Crypto projects exhibit remarkable user engagement with 22.5 thousand daily addresses active every day. This indicates the potential for growth in participation rates. The increase in user engagement can be associated with an increase in trading volume and strengthening market dynamics.
This increase in engagement reflects greater investor interest and could lead to increased trading momentum as the community expands. The Open Interest Weighted Funding Rate currently stands at 0.0355, indicating a very positive mood among futures traders and increasing confidence in ARB contracts.
This suggests that traders are inclined to go long, further reinforcing the bullish momentum, thus increasing the potential for upward price action. ARB’s performance demonstrates a strong bullish trend, with a large increase in TVL and a successful exit from a long consolidation period. However, the resistance at $1.2 remains a critical point that will challenge the uptrend. The combination of bullish indicators suggests that short-term pullbacks are possible, but the momentum is strong and significant price gains could occur if this resistance is broken.