Will Arbitrum (ARB) Rise Again? ARB Flashes Buy Signal With Strong Fundamentals

The price of Arbitrum (ARB) has dropped by over 35% in the past month. Since hitting a high of $2.1 in March, the coin has seen an eye-catching drop to around $1.01 at the time of writing. While the price action mirrors a broader bearish crypto trend, Arbitrum remains one of the hardest hit by the decline. Fittingly, the drop has led many to wonder whether Arbitrum will rise again after this downtrend.

There is no guaranteed way to determine the future price of Arbitrum, especially in the short term. However, a number of factors point to a market recovery for ARB as soon as crypto market conditions reverse or perhaps prior to the beginning of a fresh market uptrend.

Technical Signal Flashes Buy As Fundamentals Strengthen

One of the primary indicators of a potential Arbitrum price surge, especially in the short term, is the printing of a bullish signal on the cryptocurrency’s weekly chart. Spotted by experienced market analyst Ali Martinez, the TD sequential indicator suggests that Arbitrum has hit the bottom of a trend reversal.

Therefore, the coin should rebound in the coming weeks, potentially seeing as much as one to four bullish candlesticks. In the case of “four,” this would mean that Arbitrum enjoys a full month of bullish trend, rebounding to its levels before the latest market correction.

The TD Sequential presents a buy signal on the #Arbitrum weekly chart. It anticipates a one to four candlesticks rebound for $ARB! pic.twitter.com/ITylXqmVF2

— Ali (@ali_charts) May 9, 2024

Beyond technicals, Arbitrum is also enjoying a period of strong fundamental growth. For instance, the recent Ethereum Dencun upgrade significantly lowered transaction fees on the network, which has been followed by a corresponding increase in user activity.

According to on-chain data, Arbitrum recently saw a record two million transactions in a single day, a 100% increase from its March average of one million. This increased user demand indicates that more users are interacting with the Arbitrum ecosystem, a development that might bode well for the cryptocurrency’s price in the immediate future.

Lastly, the total value of assets locked (TVL) on the network appears to have found a bottom after a drop that paralleled the ARB price decline in April. The chain’s TVL currently stands at $2.53 billion, helping it retain its position as the fifth largest blockchain by DeFi TVL. Put more simply; the bottoming TVL metric may suggest that many Arbitrum users are still hanging around with their capital, anticipating improved market conditions in the weeks and months ahead.