Arbitrum forms a double bottom near $0.3150 support as strong fundamentals and higher lows hint at a possible breakout rally.
ARB trades at the apex of a descending triangle while on-chain metrics like $5B stablecoin volume and RWA highs drive momentum.
Technical and fundamental alignment in ARB builds bullish pressure with ApeChain NFT surge and rising DAO revenue boosting sentiment.
Arbitrum (ARB) shows signs of forming a double bottom at a crucial support zone. The price is holding steady and printing higher lows on the short-term chart. Besides, the breakout above the descending trendline would confirm a reversal move. This technical pattern aligns with strong fundamental growth, strengthening the potential for a swift price rally. Market watchers remain focused on this zone as ARB nears a pivotal moment.
Technical Setup: Descending Triangle Nears Resolution
ARB trades within a descending triangle pattern over the past six weeks. The price formed lower highs along a downward sloping resistance line. However, the horizontal support near $0.3150 remains firm, stopping deeper declines. Volume trends show increased activity when price tests support, indicating strong buyer interest. Moreover, the consolidation tightens as ARB approaches the triangle apex, signaling an imminent breakout.
Source: CryptoBusy
Early May saw ARB reach highs near $0.52 before sellers pushed it down. Multiple rally attempts failed to break the descending resistance, confirming the bearish structure. Hence, a breakout above this trendline would invalidate the bearish setup and target higher resistance levels. Conversely, breaking below $0.3150 would complete the pattern and likely push prices lower.
Strong Fundamentals Back Technical Strength
Fundamental catalysts support the technical picture. Real-world assets (RWAs) on Arbitrum recently hit new highs, exceeding $265 million. Additionally, Timeboost TVL grows rapidly, introducing a new revenue source via DAOs. Stablecoin transfers on Arbitrum reached $5 billion in May, leading all Layer 2 networks.
Furthermore, ApeChain NFTs show record sales and buyer growth. Yapper Challenge and Agent Arena drive consistent daily on-chain activity. Consequently, these developments boost market confidence in ARB’s long-term potential.
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