Arbitrum One remained a key Layer 2 solution in the Ethereum [ETH] ecosystem, and ARB price gained more than 11% in the past 24 hours as the broader crypto market rebounded by around 7%.
This move came as Arbitrum [ARB] appeared to form a bottoming pattern while network activity accelerated.
Is ARB price forming a bottom?
The 4-hour chart showed ARB formed a potential double bottom after the previous day’s market decline.
Bulls pushed the token from $0.19 to $0.24, but the $0.24 zone acted as a neckline that needed a clean break for a bullish structure shift.
Trend strength was visible as the momentum indicator shot from the negative territory to 0.0292. However, its momentum was weaker compared to most altcoins.
There was also capital inflow, though bulls were yet to take control, as the Chaikin Money Flow (CMF) was at -0.16.
Source: TradingView
Breaking past the neckline would mean that ARB price heads toward the $0.311 level. The fundamentals and chain activity were in support of this, but only if ARB token demand stayed high.
Network activity booming
Arbitrum posted the strongest growth among EVM chains over the past week. Active Addresses reached slightly above 2 million, a 135% weekly increase according to Nansen.
Source: Nansen
However, it’s the BNB Chain that led the pack with almost 14 million Active Addresses, with Polygon and Base chains following with 4.7 million and 3 million, respectively.
ARB outperformance was not over, as its Developer Activity also grew to a new peak over the past three months. As a result, volume spiked in the past 24 hours for all dApps on the Arbitrum One chain.
On top of that, more than 900 dApps on Arbitrum — including Uniswap [UNI] — generated $1.20 billion in daily volume.
TVL, perps and DEX volumes
The Total Value Locked (TVL) for the chain has stayed consistently around the same region since the start of December. However, this month’s data showed a 7% rise, taking the reading to about $6.53 billion.
By contrast, Perps Volume and DEXs Volume stayed flat at around $639 million and $607 million, respectively, at press time. For November, the three metrics were having a few spells of spikes in figures.
Source: DefiLlama
This left traders focused on whether price momentum and network activity could sustain a break above the $0.24 neckline. Failure to clear it could keep ARB within its recent range.
Final Thoughts
- Arbitrum gained 11% as network activity accelerated and market conditions improved.
- TVL increased by 7% this month, but Perps and DEXs Volume stayed flat despite the price rebound.
Source: https://ambcrypto.com/decoding-arbitrums-11-rebound-will-booming-activity-push-arb-toward-0-31/
