Arbitrum rises 15%; analysts believe in a new historical record soon
CriptoFácil – After being the great sensation of the first months of the year, Arbitrum saw the price of its token melt after the airdrop (distribution of tokens). However, after rising more than 15% in the last 24 hours, analysts believe that crypto assets could reach a new all-time high in the coming months.
ARB is Arbitrum’s native token, a layer two solution for . The digital asset saw the big move higher after the Shanghai update was enabled on the mainnet, allowing for the withdrawal of staking.
The widely anticipated upgrade to Ethereum underscored the strength of the protocol. And, as analysts said, this benefited the entire layer 2 ecosystem for ETH. At the same time, it weakened the other layers 1 that were born with the nickname of “Ethereum killer”, but so far have not been able to come close to the number of transactions on the ETH network.
In the face of this, analysts such as Yashu Gola highlighted three reasons why the token should reach a new record in its value in the coming months.
The first reason, according to the analyst, is the increased demand for cryptocurrencies, including Arbitrum, as a result of the increased popularity of the market. The second is increased adherence to the Arbitrum Protocol, which allows developers to build decentralized applications on a high security layer.
Finally, the third reason is the launch of new products and services based on the Arbitrum Protocol, which will increase the coin’s usefulness.
Short-term price of Arbitrum
In the short term, analyst Brian Bollinger points out that the trend is up. But there must be a correction before the move. According to the analyst, the ARB chart has formed a descending triangle, which is a sign of the upcoming decline.
“The formation of lower lows within the pattern reflects the gradual buildup of bearish momentum. The metric is used to take advantage of a short selling opportunity. However, in the last 24 hours, the ARB price has witnessed a significant flow and has broken the trendline of local resistances,” he stated.
Therefore, according to him, if the ARB price manages to sustain above the violated trend line, it would indicate that the market sentiment is changing.
“With sustained buying pressure, the ARB price should rise 15% to challenge the $1.56 barrier again,” he concluded.
By CriptoFacil