Arbitrum Just Partnered With PayPal: Are More Gains Coming?

Key Takeaways

Paypal announced it will expand its stablecoin to Arbitrum.
The Arbitrum (ARB) price has created a double bottom pattern.
Can ARB finally return to $1 and possibly reach new highs?

On July 16, PayPal announced it will expand its PYUSD stablecoin to the Arbitrum blockchain, further legitimizing the Layer-2 as one of the top choices for institutions and serious builders.

The announcement comes when stablecoin adoption on Arbitrum is at an all-time high.

Even though the ARB price has increased by more than 30% in July, it did not budge after the positive news.

Let’s analyze the price action and see what lies ahead.

ARB Price Analysis

The weekly time frame analysis shows that the ARB price fell by 90% after its all-time high in January 2024.

Arbitrum’s bearish momentum reversed in April, and the price bounced, creating a higher low in June.

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After that, the price showed remarkable resilience by breaking out from its diagonal resistance that had existed for over six months.

If the rally continues, the main obstacle to the price of ARB will be $0.50, which is the previous horizontal support level.

If ARB clears it, the road to $1.20 will be clear.

ARB Weekly Analysis — ARB/USDT Weekly Chart | Credit: Valdrin Tahiri/TradingView

While momentum indicators trend upward, they leave something to be desired. More specifically, the Relative Strength Index (RSI) has yet to exceed 50, and the Moving Average Convergence/Divergence (MACD) is still negative.

An ARB price breakout above $0.50 and an indicator breakout will confirm the bullish prediction, paving the road for $1.20.

Bullish ARB Prediction

The daily time frame chart reinforces the bullish prediction from the weekly one.

Since April, the ARB price has completed a five-wave upward movement (green) shaped as a leading diagonal.

Then, ARB completed an A-B-C correction (red) that created a double bottom pattern.

If the count is accurate, Arbitrum has started another five-wave upward movement.

ARB Wave Count — ARB/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView

Based on the existing extension, the second rally will likely be longer than the first one.

The daily RSI and MACD support this prediction, since they are moving upward and are in positive territory.

Arbitrum’s first price target is at $0.70, which will give the first and second rallies a 1:1.61 ratio.

More Upside Ahead

The Arbitrum price has surged in July and can continue increasing, aided by PayPal’s positive announcement.

The ARB price has completed a double bottom pattern that could reach at least $0.70.

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Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

[email protected]

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