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Arbitrum (ARB) has gained momentum with a strong buy signal surfacing after recording a 13.6% decline over the past week.
ARB is up by 1.5% in the past 24 hours and is trading at $1.7 at the time of writing. The asset’s market cap surged to $2.17 billion with a daily trading volume of $535 million.
Notably, ARB’s bullish momentum comes as the global crypto market cap sees a 0.4% surge over the past 24 hours — currently standing at $1.63 trillion. The global daily trading volume, however, has declined by 32% — hovering around the $57 billion mark at the reporting time.
According to data provided by Santiment, Arbitrum’s social volume increased by 126% in the past 24 hours. Data shows that the social activity around Arbitrum recorded sharp declines along with its price over the past week.
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One of the main reasons for ARB’s price drop could be the $1.7 million Concentric app hack on Jan. 22.
Data from Santiment shows that the ARB Relative Strength Index (RSI) fell from 46 to 23 over the past day. The indicator suggests that Arbitrum has been facing low volatility and selling pressure.
Consequently, the token could potentially witness bullish momentum as investor optimism rises.
Moreover, per Santiment, ARB’s price-daily active addresses (DAA) divergence is currently standing at 152%, showing a strong buy signal as there’s a lower chance of whale price manipulation.
It’s important to note that the whale transactions consisting of at least $100,000 worth of ARB tokens declined from 664 to 537 over the past day, according to the market intelligence platform.
Per a report on Jan. 3, the total value locked of the Arbitrum One platform surpassed the $10 billion mark after registering a 15% surge in a day. This shows strong potential for both Arbitrum and its native digital asset ARB.
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