Arbitrum Soars to All-Time Highs: Can It Hit $2 in 2024?

• The notable rise of Arbitrum (ARB) price has coincided with the general crypto bullish stance fueled by the ongoing spot Bitcoin and Ethereum ETF debate in the United States.
• Following today’s ARB price 6.5 percent spike to ATH, the altcoin now needs to consistently close above the support/resistance level around $1.85 to secure a further bull run.

Arbitrum (ARB) network, a leading Ethereum-based optimistic rollup that has significantly helped in the mass adoption of web3 products and digital assets in the past year, has experienced notable growth in on-chain activity in the recent past to become a top layer two scaling solution.

The Arbitrum network has attracted notable decentralized financial (DeFi) platforms including Uniswap, AAVE, GMX derivatives, and Balancer DEX among many others that have contributed to its exponential growth.

As a result, the Arbitrum network has managed to outperform other Ethereum-based layer two scaling solutions like Optimism (OP) and Polygon (MATIC) which have a combined TVL of about $1.8 billion.

In a bid to ensure a sustainable growth prospect, the Arbitrum Orbit mainnet, a universe of blockchains developed to ensure permissionless DeFi development, was recently launched by the Arbitrum team. Additionally, the Arbitrum DAO, the organization tasked with making sure the Arbitrum network achieves the highest level of decentralization, recently celebrated reaching stage 1 of protocol decentralization.

Consequently, users on the Arbitrum protocol will be given more voting power with about 11.62 percent of the ARB tokens distributed to the users and 1.13 to DAOs.

Closer Look at Arbitrum Price Analysis

The rise of Arbitrum (ARB) price to a new all-time high has been in the making since the mid-cap altcoin hit the crypto bear bottom of around 77 cents between September and October last year. Notably, ARB price has gained more than 162 percent since the crypto breakout last October. However, the altcoin had not fully confirmed the micro bullish outlook until late December when an ascending triangle broke out towards the former ATH. As a result, ARB’s daily Relative Strength Index (RSI) has comfortably risen above the 70 level, thus confirming the bulls are in control.

Notably, the ARB’s bullish outlook has been bolstered by the gradual rise in the social dominance volume and the number of active on-chain addresses, according to market data provided by market intelligence platform Santiment. Additionally, Santiment data shows that the ARB’s Market Value to Realized Value (MVRV) band is at a six-month high, thus indicating more holders are in profit.

ARB Market Outlook

Since the official launch of Arbitrum layer two scaling solution on the Ethereum network with ARB as the governance token in March 2023, the project has received significant support from DeFi developers and notable web3 protocols. As of this report, the ARB token has an average daily trading volume of about $1.5 billion, up over 50 percent in the past 24 hours, with Binance leading through its ARB/USDT pair.

With the notable mass adoption of the Ethereum network, ARB price can continue with the bullish outlook, whereby the next target according to the weekly Auto Fib Extension is between $2.07 and $2.23.