ARB Could Surge to Monthly High as Positive Sentiment Grows
Arbitrum (ARB) has shown remarkable growth recently, with increasing favorable sentiment potentially driving it toward a new monthly high. The altcoin has experienced a surge in market activity, marked by impressive gains and substantial net inflows. However, it is now facing a crucial resistance level that could determine its next move.
ARB’s Impressive Monthly Performance
Over the last month, ARB has demonstrated a consistent bullish trend, recording a remarkable 78.80% gain. The positive momentum is not limited to longer timeframes but extends to shorter periods as well:
- Weekly Gain: 15.20%
- Daily Gain: 8.08%
This continued uptrend could signal more growth ahead, as market participants maintain strong support for the altcoin, boosting its bullish momentum.
Rise in Netflow Fuels Accumulation Interest
At the time of writing, ARB has recorded the largest chain netflow in the last 24 hours, surpassing both Ethereum (ETH) and Solana (SOL) with a total of $42.6 million in net inflows. Chain netflow measures the difference between an asset’s inflow and outflow, tracking fund movement, user activity, and liquidity trends.
Positive netflow suggests an increase in accumulation interest, which could lead to a potential price surge. The significant inflow into ARB supports its ongoing bullish trend, further enhancing the likelihood of continued upward momentum.
Declining Selling Pressure Suggests Sustained Growth
After a period of strong positive exchange netflow, which totaled $17.04 million over four consecutive days, a shift has occurred. Recently, negative netflow was recorded, signaling that market participants are now holding onto their ARB instead of selling. As a result, ARB saw an 8% price gain.
Furthermore, data from IntoTheBlock highlights a significant reduction in large-holder transactions, dropping from 706 to 206 over a 48-hour period. This decline suggests that whales are scaling back on selling ARB, which could help maintain its upward price movement.
Key Resistance and $2.4 Target for ARB
As ARB approaches its next key resistance level, it is expected to encounter significant selling pressure. According to the In/Out of the Money Around Price (IOMAP) metric, a major supply zone lies between $0.96 and $0.98. This supply zone holds a calculated selling pressure of 69.5 million ARB, spread across more than 27,000 addresses.
If ARB can surpass this resistance zone, it could target an upper price of $2.4, where significant liquidity is concentrated. This resistance level at $0.983 has been a hurdle in the past, but a successful breakthrough could set the stage for further gains.
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