Arbitrum Soars to All-Time Highs: Can It Hit $3 in 2024?

• Arbitrum (ARB) shows signs of a short-term rally to reach the coveted $3 mark over the coming weeks.
• The network has become one of the most sought projects due to its unique solution to the issue of scalability.

Arbitrum (ARB) is making headways at the beginning of the year after ending 2023 with an all-time high of $1.79. This has since been flipped and is now a key support for the digital asset. Based on technical indicators and developments around the network, it’s clear that the token will be even more bullish in 2024. By far and large, the wider crypto market is expected to be bullish, pulling with it ARB.

At the time of press, ARB is trading at $2.02 after a nearly 18% surge in the last 24 hours with volume up by more than 100%. This comes just a few hours after the token marked a new all-time high after reaching $2. The price rally has coincided with the network’s total value locked (TVL) rallied past $2.5 billion. Furthermore, on-chain volumes on Arbitrum-based applications crossed $920 million. Interestingly, last year, the network in an attempt to incentivize developers distributed about $40 million worth of ARB tokens to projects that were built on the network.

The rally being witnessed has coincided with ARB social volume peaking. Starting November, this has been on an upward trajectory, peaking on 16th December.

Analysis shows that the token will face two key resistance levels soon. Last year, the $0.93-$1 resistance region was flipped to support. Investors will expect a similar response in the $2.90-$3 resistance region. One key concern for investors is that with most early buyers in profit, they could look to cash out, leading to a price dip soon. A catalyst for such an event will be a drop-below local support. However, investors’ risk in the crypto market seems to be growing, encouraging a majority to keep buying and taking advantage of price dips. This will allow ARB to ride the bullish wave.

What Makes Arbitrum (ARB) Unique?

Launched a few years ago, the layer 2 scaling solution utilizes optimistic rollups to achieve its goal of improving speed, scalability, and cost-efficiency on Ethereum. Although it faces stiff competition from the likes of Polygon (MATIC), Optimism, and zkSync, it has carved out a significant share of the market.

With the token setting a new all-time in the past couple of hours, investors are confident that this is not the end but the beginning. If it maintains the upward trajectory, ARB could easily be the best performer in the crypto market by the end of the year.