{"id":443835,"date":"2023-09-29T14:38:00","date_gmt":"2023-09-29T14:38:00","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=443835"},"modified":"2023-09-29T14:38:00","modified_gmt":"2023-09-29T14:38:00","slug":"arbitrum-price-prediction-arb-leaps-9-is-layer-2-scaling-gaining-traction","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/arbitrum-price-prediction-arb-leaps-9-is-layer-2-scaling-gaining-traction","title":{"rendered":"Arbitrum Price Prediction: ARB Leaps 9% \u2013 Is Layer-2 Scaling Gaining Traction?"},"content":{"rendered":"

Arbitrum (ARB<\/a>) price has been bullish since mid-month, recording a 20% climb beginning September 12. On September 29, the Ethereum (ETH<\/a>) Layer-2 (L2) scaling solution token leaped 9% to record an intra-day high of $0.9029. It continues to extend with prospects to escape from the descending parallel channel. For this to happen, however, ARB must overcome the upper boundary of the bearish channel and record a decisive candlestick close above the $ 1,000 psychological level.<\/p>\n

Meanwhile, a fair value gap (FVG) continues to act as a magnet. It indicates an inefficiency that needs to be filled. If the bulls can muster the synergy, Arbitrum price can extend the gains towards the FVG. However, for a confirmed uptrend, it must overcome the consequential encroachment (CE) at $1.092.<\/p>\n

The overall upward trajectory of the Relative Strength Index (RSI) remains promising. The green histogram bars of the Awesome Oscillator that continue to edge north toward the positive corroborate this outlook.<\/p>\n

\"Arbitrum<\/a>
TradingView: ARB\/USDT 1-day chart<\/a><\/figcaption><\/figure>\n

Cognizant that the RSI has just tipped west and the AO indicator is still in the negative zone, it is likely that buyer momentum is waning. If left unchecked, it could threaten the upside potential for Arbitrum price.  The ensuing seller momentum could see ARB mirror the same bounce it has indicated since mid-April, repelling from the channel’s upper boundary.<\/p>\n

In such an outlook, the channel’s midline remains critical at $0.757, with a break and close below it likely to invalidate the optimistic thesis. In the dire case, the downtrend could continue, sending Arbitrum price to the channel’s lower boundary at around the $0.500 psychological level.<\/p>\n

Active Arbitrum Addresses by Profitability<\/h2>\n

On-chain aggregator IntoTheBlock, showing the volume of addresses by profitability, reveals an interesting picture. At the current value of $0.892, only 11.84% of ARB holders (977 addresses) are sitting on unrealized profit. Meanwhile, 31% ARB holders (2,590 addresses) are sitting on unrealized losses, while  56.82% (4,690 addresses) are breaking even.<\/p>\n

\"Active<\/a>
Active Addresses by Profitability<\/a><\/figcaption><\/figure>\n

As long as more holders are out of the money (unrealized losses), the likelihood of selling pressure remains minimal. More accurately, they are likely to wait for the price to go up, either to join the break-even camp or look for profitable positions to exit. This gives ARB time to recover.<\/p>\n

Arbitrum Leading L2 Wars<\/h2>\n

It is worth mentioning that Arbitrum remains the dominant player among Ethereum layer-2 (L2<\/a>) networks. Daily transactions on the ARB network remain high compared to its L2 peers like Optimism<\/a> and Base.<\/p>\n

\"Arbitrum<\/a>
Arbitrum Ethereum L2 Networks<\/a><\/figcaption><\/figure>\n

Switch gaze from ARB and consider TGC<\/a>, the ticker token for the TG.Casino ecosystem, set to go live on exchanges soon.<\/p>\n