thecoinrepublic.com
Arbitrum price gained traction and headed north amid the broader market recovery. The crypto currently stands at a moderate weekly gain of 10.81%, indicating the recovery in the recent sessions.
Moreover, despite the recent recovery in the short term, the investors seemed to be confused. This is because the Arbitrum was hovering in a long-term bearish trend per the key 200-day Exponential moving average.
However, the analysts noted a bullish divergence in an important on-chain metrics: the price DAA divergence indicator. This hinted at a possible recovery in ARB price. Let’s analyze it and find a possible trajectory in Arbitrum in the short term.
ARB Price DAA Divergence Indicator Highlights A Bullish Scenario Ahead
Arbitrum was trading close to $0.59 at the time of writing, indicating a swift intraday loss of 0.79%. Despite losing intraday, the crypto still boasts a positive weekly jump of 10.81%, indicating a recovery in the recent sessions.
Moreover, analysts have noted a significant shift in the price DAA (Daily active address) divergence indicator with the recent price recovery.
As per the analysts, a positive divergence was observed between the ARB price and Daily active addresses. This indicated a possible recovery in the crypto price.
Daily active address is a metric to identify the number of users participating in a particular transaction in a given period. A positive divergence between the price and daily active addresses generally indicates a bullish scenario.
It has a live market capitalization of $2.08 Billion and ranks 41st in the crypto-verse. The volume-to-market cap ratio at 7.99% suggests mid-volatility.
Can Arbitrum Mark A Bullish Reversal Next Month
From a price action point of view, Arbirtum seemed to be in a short-term consolidation near the demand zone of $0.5 level. However, the long-term trend seemed to be bearish below the 200-day Exponential moving average.
On the higher side, the $0.64 level may act as an immediate resistance. If surpassed, it could unlock ARB’s price potential to a higher supply of $0.95 and a 200-day EMA. The $05 level may be an immediate support on the lower side.
If the price breaks below the $0.5 level, it may validate a bearish continuation, and the price may suffer more.
Additionally, the ARB price needs to surpass the higher supply of $0.95 for a bullish reversal. Until the price is maintained below the $0.95 level, it may face the risk of selloff at the higher levels.
Arbitrum price witnessed a 10.81% gain a week amid a broader market recovery. The short-term trend outlook seemed to be improving.
However, the long-term trend remained bearish below the 200-day EMA. The analysts noted a positive divergence between ARB price and daily active addresses, suggesting potential recovery.
As of now, Arbitrum has been consolidating near the $0.5 demand zone. Immediate resistance was at $0.64, potentially reaching $0.95, and the 200-day EMA was surpassed.
Conversely, Immediate support is at $0.5; a break below this could continue the bearish trend. For a bullish reversal, ARB must surpass $0.95.