Key Takeaways:
- The Arbitrum token lost 27% in value since the March 24 peak.
- ARB could reach $1.52 based on a bullish setup.
- On-chain metrics support the bullish claim.
YEREVAN (CoinChapter.com) – Arbitrum (ARB) declined 27% since peaking at $1.56 on March 24, a day after the airdrop. As a result, the token slid to $1.14 in the European session on March 28 and eyed a 30% gain by March end, supported by robust on-chain data.
ARB in a falling wedge
Arbitrum token price formed a falling wedge, best visible on the hourly price chart below. The latter features two converging trendlines that enclose the price action preventing sharp breaks in either direction.
Also read: Binance Lists Ethereum L2 Arbitrum Token Ahead of Airdrop — But ARB Crash Fears Persist.
Furthermore, the falling wedge is a bullish reversal pattern that could take ARB 30% higher to reach $1.52 by March 31 if the token confirms the pattern by breaking above the resistance line.
ARB retested the wedge’s support several times during the Asian-Pacific and European sessions on March 28, confirming its relevance. Arbitrum’s growing total value locked (TVL) confirms the bullish expectations.
Arbitrum TVL near record high
According to the DeFi sector tracker DeFi Llama, Arbitrum TVL doubled year-to-date to reach $2.17 billion on March 28, close to reclaiming its all-time high of $2.35 billion from November 2021. As a result, Arbitrum flipped Polygon, Avalanche, and Optimism, ranking 4th by TVL, after Ethereum, Tron, and Binance Smart Chain.
Decentralized exchanges GMX, Uniswap V3, and Arbitrum Exchange accounted for 36% of the overall TVL with a collective $784 million. Arbitrum added $90 million in TVL since ARB airdrop, despite the dropped number of unique addresses holding the token.
According to another crypto tracker, Dune, the number of unique ARB addresses peaked at 290,000 after the airdrop on March 23.
Also read: Silver Could Rise 30% in 2023 — Will Bitcoin Mirror Its Gains?
However, once the ARB trading launched on Binance on March 24, the number dropped to 245,000 in 24 hours, meaning many airdrop recipients sold ARB for profit, pushing the above price decline. The number picked up since, reaching over 262,000 on March 28.
The TVL data and the growing number of ARB unique addresses support the bullish perspective and the $1.52 price target by March 31.
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