The arbitrage pricing has found stability around $1.02.
Metrics collected directly from the blockchain have revealed an uptick in investment enthusiasm.
Additionally, investors appear to have cashed out, which has reset several crucial sell signals that surfaced last week.
There may be a buying opportunity for investors in ARB at critical support levels before the stock rebounds to the $1.12 and $1.29 resistance levels.
There are indications that the arbitrage price is beginning to reverse its recent negative trend. A bottom shape might signal that buyers are steadily accumulating before the 2023 surge commences.
Optimism Reigns in the Crypto Market
Following the Binance agreement with US authorities, experts believe approval of the Bitcoin ETF is imminent. There is a 90% chance that the ETF will be approved in January 2024, according to experts at Bloomberg. If this decision is implemented, it will spark a major purchasing frenzy that will boost the value of all other cryptocurrencies.
The most recent development is a gathering of ETF filers with the US Securities and Exchange Commission (SEC), including representatives from Grayscale, BlackRock, and others.
In the near future, arbitrage on-chain measures will signify a purchase.
Between November 21 and November 23, the number of Active Addresses (AA) on the Arbitrum network increased by 160%, from 11,357 to 29,435. This rise indicates that there is demand in ARB at the present price among hesitant purchasers. It's possible that these investors are buying the dip after the ARB price dropped 21% in the previous two weeks.
In addition, on November 21 there was a 160% increase in the Network Growth indicator, which tracks the number of unique addresses that have joined the ARB blockchain. This rise might be linked to the infusion of cash and adds to the positive view of ARB.
On November 23, a capitulation event occurred, as measured by the Network Realized Profit/Loss (NPL) indicator, when $3.06 million worth of ARB were sold at a loss. These capitulation episodes are where short-term investors sell, allowing long-term holders to accumulate, and these indicators are typically considered as buy signals.
Bulls are particularly vulnerable to unrealized profits, but Arbitrum appears to be safe. According to Santiment's 30-day Market Value to Realized Value (MVRV) ratio, investors who acquired ARB in the previous month have seen their unrealized profits decline from approximately 38% on November 10 to 4% as of this writing.
Because of this drop, the prospects of a rally that is not threatened by sellers have increased.
Overall, both the on-chain and technological perspectives paint a positive picture of Arbitrum's future.
The ARB price is poised to begin a meteoric upswing.
The current arbitrage price is $1.03, but if the bulls are persistent, the price might rise by 9% to $1.12, which is the weekly resistance level. If bullish momentum continues to build, this resistance level on the daily time frame might be turned into support.
If that happens, ARB might be setting its sights on retesting the $1.28 resistance level. There would be a 24% increase in value if you made this switch.
Another way this bullish situation may play out is by retracing lower before starting a northward rise. In this situation, ARB buyers might accumulate at $0.938, $0.907 and $0.853 obstacles. A 40% increase would be achieved by reaching the $1.28 barrier, from where the price is currently.
#arbitrum #ARB #Layer2