After reaching an all-time high of $1.6 on March 23, the price of Arbitrum (ARB) is down nearly 20% on a weekly basis. However, the Ethereum Layer 2 (L2) token looks set to continue rising in the coming weeks.
Fractal Price MATIC
The bullish ARB flag can be traced back to the market launch of competitor L2 Ethereum Polygon.
MATIC started trading on Binance on April 26, 2019 at a price of $0.0026. The price jumped nearly 300% on the same day and hit $0.0105 before erasing 70% of the gains during a market correction on May 9, 2019.
It has since regained momentum, increasing its value by nearly 1,350% to $0.045 on May 21, 2019.
MATIC 4-hour chart | Source: TradingView
According to independent market analysts applethe price trajectory mirrors recurring phenomena associated with digital token launches, and its fundamentals appear to be strong.
For example, blockchain layer 1 Solana (SOL) rallied 50,000% before going through a similar phase of gains, corrections, and sideways after launching on exchanges in April 2020.
price chart Daily SOL | Source: TradingView
price ARB May Hit $2 in April
Fundamentally, Arbitrum has been a serious contender in the L2 Ethereum space in recent months, along with several leading DeFi protocols such as GMX, Uniswap, Sushi, and Aave.
“GMX and Radiant on Arbitrum are two of the fastest-growing protocols this year, both fundamentally and bullishly. Looking at user retention metrics, it’s clear that these protocols are gaining traction in the market compared to Uniswap or Aave,” analyst firm Messari researcher Dustin Teander said, notes.
Optimistic and Arbitrated Monthly User Retention | Source: Messari
According to the data source, the total value locked (TVL) of the Arbitrum mining pool increased to $2.2 billion as of March 29, from about $981 million three months earlier. Defilama.
Mac noted that Arbitrum’s strong fundamentals could limit downside risk to ARB and spur traders to return to accumulating positions in the coming weeks.
Hourly ARB price chart | Source: TradingView
This could lead to another rally that is expected to reach $2 in April 2023, as shown in the chart below.
- Stargate Finance on Arbitrum sees boom in on-chain activity
- Arbitrum enters top 40 after airdrop – Top 10 ARB holders hold 94.41% of circulating supply
- Bitcoin options traders remain optimistic despite CFTC lawsuit against Binance
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As reported by Cointelegraph
