ARB signals a buying opportunity after a week of consecutive declines
Arbitrum (ARB) is experiencing a surge in momentum, as indicated by a strong buy signal following a 13.6% decline in the past week.
As of writing, ARB has increased by 1.5% in the last 24 hours and is currently trading at $1.7. The market cap of the asset has also risen to $2.17 billion, with a daily trading volume of $535 million.
It is worth noting that ARB’s bullish momentum coincides with a 0.4% increase in the global crypto market cap over the past 24 hours, which currently stands at $1.63 trillion. However, the daily trading volume has decreased by 32%, hovering around $57 billion.
According to data from Santiment, the social volume of Arbitrum has increased by 126% in the past 24 hours. This increase in social activity follows a significant decline in both social activity and price over the past week.
One possible reason for the drop in ARB’s price could be the recent hack on the Concentric app, which resulted in a loss of $1.7 million on January 22.
The ARB Relative Strength Index (RSI) has fallen from 46 to 23 in the past day, indicating low volatility and selling pressure for Arbitrum. However, this could also lead to a potential increase in bullish momentum as investor optimism grows.
Additionally, Santiment reports that the price-daily active addresses (DAA) divergence for ARB is currently at 152%, signaling a strong buy signal with a lower chance of whale price manipulation. The number of whale transactions involving at least $100,000 worth of ARB tokens has decreased from 664 to 537 in the past day, according to the market intelligence platform.
On January 3, the total value locked on the Arbitrum One platform surpassed $10 billion after a 15% surge in just one day. This demonstrates the strong potential for both Arbitrum and its native digital asset ARB.
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