Arbitrum token may be on the verge of a strong bullish breakout as its ecosystem growth continues.
Arbitrum (ARB) price dropped to $0.700, down by 45% from its highest level in December last year.
Third-party data shows that the Arbitrum ecosystem is doing well. According to DeFi Llama, the volume of tokens on the chain has jumped by 118% in the last seven days to $10.15 billion, its best week in months.
Uniswap (UNI) was the most active player in the ecosystem, handling $6.2 billion in volume. It was followed by Camelot, Pancakeswap, and Maverick Protocol.
More data by Nansen shows that the number of active addresses in the network surged by 77% to 2.43 million in the last 7 days. This growth pushed the number of transactions up by 35% and fees up by 182% to over $1 million.
Arbitrum has a long way to catch up with Base, which has become the biggest layer-2 network in the crypto industry. Base had over 5.6 million active addresses, over 50 million transactions, while its active fees rose by 13% to $3.7 million.
Arbitrum price could rebound soon
The daily chart shows that the ARB price peaked at $1.2420 in November last year, and has now pulled back to $0.70. Its highest level in November was an important level since it coincided with the highest swing in May last year. It was also the upper side of the cup and handle pattern, a popular continuation sign.
Another positive catalyst is that Arbitrum has formed a falling wedge pattern, which is made up of two falling and converging trendlines. These two lines are nearing their confluence levels, signaling a potential rebound.
A rebound will push the Arbitrum price to $1.2470, the upper side of the C&H, which is about 76% above the current level. The cup’s depth is about 70%. Therefore, by measuring the same distance from its upper side, means that the Arbitrum price will get to $2.13. A break below the support at $0.4626 will invalidate the bullish view.
