Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Arbitrum broke past a critical resistance with 9% gains over the past day.
- Rising open interest along with funding rates hinted at further gains.
Arbitrum [ARB] continued its strong bullish rally, as it broke above the $0.919 resistance level. This extended its bullish gains by 9% over the past 24 hours.
How much are 1,10,100 ARBs worth today?
With Bitcoin [BTC] hitting $28k within the same time period, ARB bulls could look to hit the $1 level over the coming days.
Bulls show their strength
Source: ARB/USDT on Trading View
Arbitrum began its path to recovery after hitting the low of $0.75 in early September. The bullish rebound faced a key hurdle at the $0.919 resistance. Yet, bears were unable to withstand the buying pressure, as bulls flipped the level to support.
The Relative Strength Index (RSI) highlighted the bullish momentum, as it climbed into the overbought zone. Similarly, the Chaikin Money Flow (CMF) revealed sustained capital inflows by staying above the zero level and posting a reading of +0.13, as of the time of writing.
With the bullish rally breaking the lower low of the bearish swing, buyers could push for further gains between $1 to $1.1. Alternatively, a BTC reversal under $28k could bring sellers back into the game for a retest of the new support at $0.919.
Buyers delighted with rising Open Interest along with positive funding rates
Source: Coinalyze
According to Coinalyze, the Open Interest data registered a spike from $89.46 million to $122.74 million over the past five days. This confirmed the bullish bias, as market participants sought to get in on the price rally.
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Likewise, the funding rates were very positive, especially on the higher timeframes. This reflected buyers’ confidence in further gains for Arbitrum.
