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Arbitrum Price Could Be Going Up After New Addresses Record

Published May 16, 2024 1:51 PM
Nikola Lazic
Published May 16, 2024 1:51 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Arbitrum has hit an all-time high in new addresses.
  • Meanwhile, the ARB token shows signs of potential reversal.
  • The Arbitrum platform is one of the most prominent layer 2 scaling solutions for Ethereum.

Arbitrum, a prominent Layer 2 solution for Ethereum, reached an all-time high in newly created addresses on May 16 2024.

Meanwhile, the price of Arbitrum’s ARB token peaked at $2.40 on January 10 but fell below $1 on April 13. On May 14, it retested this area, spiking up by 7%. With some early signs of the previous downtrend ending, can ARB find its way back up? 

Newly Created Arbitrum Addresses Reach An All-time High

Arbitrum has achieved a new record in user engagement, with newly created addresses nearing 900,000. This growth has been spurred by the influx of new participants engaging with the platform’s DeFi and NFT features. 

The platform  has gained a reputation as a major layer 2 solution for Ethereum, enhancing the efficiency and clarity of smart contracts between the blockchain and the layer 2. The spike in Arbitrum’s address creation began in March. However, it has escalated dramatically over the past two weeks, largely driven by new development teams adopting Arbitrum.

Arbitrum (ARB) Price Analysis 

The price of ARB found support at $1 on April 13 after spiking down to $0.90. A corrective recovery followed to $1.20 on April 22, but the price continued to go down, falling to $0.90. This downtrend, which started on March 13, formed a descending channel with a breakout taking place on May 5. 

Arbitrum
ARBUSD | Credit: Nikola Lazic/Tradinview

The daily chart RSI fell to its oversold zone of 30% on May 14, suggesting the price was near its bottom. MACD showed bullish divergence with the falling price, but the rising moving averages hint at a reversal. 

The price ended its five-wave decline, so now we are likely seeing the first sub-wave of a new uptrend developing. If ARB goes above the $1.20 area, that could be an early sign, while the next one would be a higher low at a retracement for its second wave. 

After these confirmations, we could expect a further rise with a price target of $1.40, where the next resistance level to the upside is located. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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