Amid the ongoing downturn in the cryptocurrency market, Arbitrum has gained massive attention from traders, investors, as well as institutions. Today, an on-chain analytics firm, IntoTheBlock has shed light on the notable uptick in Arbitrum transactions since early March 2024. Daily transactions have soared, surpassing 2 million yesterday, marking a significant increase from the average of around 1 million earlier in the month.
ARB transaction volume soars
This surge in transaction volume coincided with a sharp decline in the price of the Arbitrum (ARB) token, which began on March 14, 2024, resulting in a price drop of over 50%. Analysts suggest that the continuous decrease in price since then has likely fueled the heightened trading activity on the platform.
Looking at these data highlights, investors and traders might take this as an advantage and accumulate massive ARB tokens, which are currently reflected in the transaction volume. Although ARB is now trading at a crucial level, there might be a chance that the price will reverse from this level.
Arbitrum (ARB) technical analysis and key levels
According to expert technical analysis, the ARB token is currently moving near the demand zone, which may cause an upside momentum. Additionally, the ARB token on a daily time frame looks bullish because the Relative Strength Index (RSI) value is in the oversold zone, and there is a bullish divergence found on the chart.
As per historical data, whenever the chart sees a bullish divergence, the majority of the time, the market experiences a bullish move. Besides ARB’s bullish outlook, if the ARB daily candle closes below the $0.93 level, then there is a high chance that it will fall more.
Additionally, a prominent trader and analyst also made a post on X, stating that the TC sequential flashes a buy signal on the Arbitrum weekly chart, suggesting a potential rebound of one to four candles for ARB. Traders may anticipate favorable price momentum based on this signal.
Currently, ARB is trading near the $1.01 level, and in the last 24 hours, it experienced a 0.5% downside momentum. If we look at the performance of ARB over a longer period, in the last 7 days, it experienced nearly a 1.5% downside momentum. Whereas, in the last 30 days, ARB’s price experienced a massive fall of over 35%.
