Wealth Code: ARB (Arbitrum)
The wealth code we are going to focus on today is ARB.
Cryptocurrency investor Andrew Kang recently tweeted that despite Arbitrum ($ARB)’s recent performance, its true value has not yet been fully explored. He emphasized that Arbitrum’s is far superior to his L2 competitors in terms of DeFi total locked volume (TVL) and transaction volume.
The current price is about $1.0925, which is a potential coin worth exploring in depth. As the Ethereum expansion plan is gradually recognized by the market, Arbitrum, as part of the Layer 2 expansion solution, has a promising future. Although the current price performance is stable, market sentiment is gradually warming up, and there is still good room for growth in the long run. The following is my investment strategy and suggestions to help you seize this opportunity.
Target position and defensive position:
Target ①: $1.50
Target ②: $1.80
Target ③: $2.00
Defensive position: $0.90
Entry strategy:
The current price of ARB is close to the critical range for breakthrough. If it breaks through $1.10, you can consider entering a position and gradually increasing your position to the target price of $1.50, $1.80, or even $2.00.
It is recommended to adopt a phased entry strategy to avoid the emotional impact of market fluctuations. Once the key pressure level is broken, you can steadily increase your position and never chase the rise and sell the fall.
If the price falls below $0.90, even if the overall trend is bullish, you still need to consider stop loss to avoid excessive risks due to short-term declines.
Why choose ARB?
Arbitrum is currently the most popular Ethereum expansion solution. Its unique Rollups technology can significantly increase Ethereum's transaction throughput and reduce users' transaction costs. With the gradual promotion of Ethereum 2.0, the demand for Layer 2 solutions will increase, and Arbitrum is undoubtedly one of the best.
With the booming decentralized finance (DeFi) and NFT markets, Arbitrum is able to provide a low-cost and high-efficiency trading environment for these applications. Whether in liquidity mining or DEX transactions, the demand for ARB will continue to grow.
Market prospects:
Arbitrum has a very broad market prospect. As more applications migrate to the Layer 2 platform, Arbitrum will further consolidate its market position, especially in the fields of DeFi and NFT. With the launch of ETH 2.0, Arbitrum as a Layer 2 expansion solution will also usher in greater market demand.
In addition, Arbitrum’s DAO governance mechanism also gives coin holders a greater say in the development of the platform. This means that ARB is not only a short-term trading tool, but also a long-term investment target.
When is the best time to enter the market?
For short-term investors, it is recommended to pay attention to the breakthrough above $1.10. Once the price breaks through and stabilizes, you can consider entering the market. At this time, you can avoid chasing the rise through the strategy of fixed investment or entering the market in batches.
For medium and long-term investors, they can gradually increase their positions according to changes in market sentiment, with target positions of $1.50, $1.80 and $2.00. At this time, it is recommended to pay attention to position control and guard against risks brought by market fluctuations.
Summarize:
As a Layer 2-based expansion solution, ARB has broad prospects. As the Ethereum ecosystem gradually improves, its market demand and value will gradually increase. Combined with the current market performance, ARB is a potential coin worthy of long-term attention.
If you have some understanding of the market and can bear the risk of short-term fluctuations, you can consider gradually laying out on dips. Stay calm and don't be too eager for quick success. I believe that ARB will bring you rich returns in the future.
Remember, investing is a process of patient accumulation, with risks and rewards coexisting.
