Arbitrum Price Forecast: Is ARB a Smart Choice for September?

Arbitrum Price Analysis: Is ARB Poised for a Short-Term Recovery?

Arbitrum’s price has gained momentum, reflecting a broader market recovery. Currently, ARB shows a weekly gain of 10.81%, signaling positive movement in recent sessions. Despite this short-term improvement, investor sentiment remains uncertain due to Arbitrum’s long-term bearish trend, as indicated by the 200-day Exponential Moving Average (EMA).

However, analysts have observed a bullish divergence in an important on-chain metric: the Price Daily Active Address (DAA) Divergence Indicator. This could suggest a potential recovery for ARB. Let’s delve into the details and explore Arbitrum’s possible short-term trajectory.

ARB Price DAA Divergence Indicator Highlights a Bullish Scenario Ahead

As of now, Arbitrum is trading around $0.59, experiencing an intraday loss of 0.79%. Despite this, the cryptocurrency still maintains a positive weekly increase of 10.81%, reflecting recent recovery efforts.

Analysts have highlighted a notable shift in the Price DAA Divergence Indicator, which tracks the divergence between ARB’s price and the Daily Active Addresses (DAA). A positive divergence between these metrics suggests a bullish outlook.

• Daily Active Address (DAA): This metric measures the number of unique users participating in transactions within a specific period.
• Positive Divergence: When the price increases while DAA remains stable or grows, it typically indicates a bullish scenario.

Currently, Arbitrum holds a market capitalization of $2.08 billion, ranking 41st in the cryptocurrency market. The volume-to-market cap ratio stands at 7.99%, indicating mid-level volatility.

Can Arbitrum Mark a Bullish Reversal Next Month?

From a price action perspective, Arbitrum appears to be consolidating near the $0.50 demand zone. However, the long-term trend remains bearish below the 200-day EMA. On the upside, the $0.64 level may act as immediate resistance. Surpassing this level could potentially lead ARB to higher resistance at $0.95 and beyond, aligning with the 200-day EMA.

Conversely, immediate support is seen at the $0.50 level. A breakdown below this support could validate a continued bearish trend, leading to further declines.

For a bullish reversal, ARB must exceed the $0.95 level. If it remains below this threshold, there is a risk of further sell-offs at higher levels. Despite the recent 10.81% gain, the long-term trend remains bearish beneath the 200-day EMA. Analysts note a positive divergence between ARB’s price and Daily Active Addresses, hinting at potential recovery.

Currently, Arbitrum is consolidating near the $0.50 demand zone, with immediate resistance at $0.64 and potential for reaching $0.95 if the 200-day EMA is surpassed. Immediate support stands at $0.50; a fall below this could continue the bearish trend. For a bullish reversal, ARB must clear the $0.95 mark.