Arbitrum (ARB) has surged more than 12% in the last 24 hours following its listing on Robinhood, fueling strong speculative interest. Its market cap has now reached $1.8 billion, while trading volume has spiked to $400 million over the same period.
Despite this price surge, technical indicators show that ARB remains in a downtrend, though buyers are beginning to take control.
ARB DMI Chart Shows Buyers Are Now In Control
After the Robinhood listing annoucement, Arbitrum’s Directional Movement Index (DMI) chart has shown notable shifts.
The ADX, which measures trend strength, has slightly declined to 28.4 from 30.6, reflecting a weakening downtrend. However, the +DI has surged from 13.5 to 29.3, while the -DI has dropped from 37.3 to 25.2. It indicates that buying momentum is increasing while selling pressure is fading.
Despite these improvements, ARB remains in a downtrend. Yet, the recent shift in directional movement suggests a potential trend reversal if bullish momentum continues to build.
The Average Directional Index (ADX) is a technical indicator that gauges the strength of a trend, regardless of direction. Readings above 25 indicate a strong trend, while values below 20 suggest weak or uncertain market conditions.
With ADX currently at 28.4, ARB’s trend remains well-defined, but the declining value suggests the downtrend is losing strength.
The rising +DI and falling -DI indicate that buyers are beginning to take control, but ARB still needs further confirmation to fully shift into an uptrend. If +DI continues to rise and overtakes -DI, ARB could establish a bullish reversal.
Arbitrum Daily Active Addresses Continues To Fall
Despite the recent surge in Arbitrum price following its listing on Robinhood, the number of 7-day Active Addresses on the Arbitrum chain has been steadily declining since December.
Currently, this metric sits at approximately 36,400, a sharp drop from the 110,000 active addresses recorded on December 7, when ARB was priced at around $1.23.
While the listing on Robinhood has driven short-term speculative interest, the long-term sustainability of ARB’s price growth could be challenged if on-chain engagement continues to weaken.
Tracking the number of active addresses is crucial as it reflects real user participation and adoption of a blockchain network. A growing number of active addresses typically indicates higher usage, stronger demand for the network’s services, and a more engaged community.
However, Arbitrum’s declining activity raises concerns about whether the recent price rally is driven by genuine adoption or simply market speculation following the Robinhood listing.
If this trend persists, it could indicate that despite the price increase, interest in using the network itself is fading. This may eventually weigh on ARB’s long-term value.
Arbitrum (ARB) Crypto Price Prediction for March
Arbitrum EMA lines indicate that the coin is still in a downtrend, as its short-term moving averages remain below the long-term ones.
However, with the recent price surge following its listing on Robinhood, the short-term lines are beginning to turn upward.
If this momentum continues, Arbitrum price could test resistance at $0.438. A breakout above this level could open the door for a move toward $0.466 and even $0.51.
The key for ARB will be whether buying pressure remains strong enough to sustain this uptrend, potentially reversing its previous downward structure.
On the other hand, if ARB fails to maintain its bullish momentum, the downtrend could resume. That could lead to a retest of the $0.38 support level.
A breakdown below this zone would signal renewed weakness, potentially pushing the price down to $0.349. If this level is lost, ARB will drop below $0.35 for the first time ever, further reinforcing bearish sentiment.
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