Assessing if Arkham [ARKM] can break $2.8 resistance, soar to $4

• ARKM nears $2.828 resistance, supported by strong momentum and increased volatility.
• Surging volume, Open Interest, and active addresses indicate growing confidence in a potential breakout.

With Arkham [ARKM] breaking out of its bullish flag and trading at $1.97, up 11.77% at press time, all eyes are on whether it can overcome the critical $2.828 resistance.

A breakthrough at this level could signal a major rally, potentially pushing ARKM towards $4. However, the question remains—will the current momentum carry ARKM through this barrier?

ARKM creates pressure at $2.828

Arkham’s chart showed the token gaining momentum after a long consolidation phase.

Having already broken out of its bullish flag pattern, Arkham was nearing the $2.828 resistance level at press time, which has historically posed a challenge. 

If this level is surpassed, $4 becomes the next target. Therefore, the upcoming price action around this level will be crucial for traders.

Additionally, the Bollinger Bands showed increasing volatility as ARKM approached this key level. The RSI had moved above 73, indicating that Arkham could be overbought.

However, this can be expected during periods of sharp rallies. 

So, traders should monitor the resistance zone closely, as a failure to break through could signal a short-term pullback.

Source: TradingView

Volume surge: What does it mean?

Another bullish signal is Arkham’s 163.18% volume spike, which brought total trading volume to $276.58 million over the past 24 hours.

This significant volume increase confirmed that traders were accumulating ARKM, essential for sustaining upward momentum. 

However, if volume fails to keep up, ARKM might struggle to push through $2.828. Therefore, maintaining elevated volume is key to any potential breakout.

Source: Coinglass

More interest, more potential

Daily active addresses have slightly risen to 330 from 298, signaling a growing interest in ARKM. This rise in network activity coincides with the price surge, indicating that more users are interacting with the token.

Therefore, this uptick in activity supports the likelihood of Arkham continuing its upward trend.

Source: Santiment

What traders are betting on

ARKM’s Open Interest has also surged by 19.54%, reaching $57.09 million. This rise suggested that more traders were opening positions, reflecting strong market sentiment.

Realistic or not, here’s ARKM’s market cap in BTC’s terms

The combination of high Open Interest and rising volume implies that Arkham could be primed for a significant move.

Source: Coinglass

ARKM’s breakout, coupled with rising volume and increased market activity, points to a likely test of the $2.828 resistance level. If Arkham breaks through, a rally toward $4 becomes highly probable.