Arbitrum RWA holders cross 10K – Can ARB extend its 16% rally?

As the crypto market surged, Arbitrum’s [ARB] upside momentum strengthened significantly.

ARB finally broke out of the thin margin it has held for the past week. As a result, the altcoin successfully held $0.073 and rose to a monthly high of $0.09.

At press time, Arbitrum was trading around $0.088, marking a 16.28% surge on the daily charts. Over the same period, the altcoin’s trading volume climbed by 378% to $158 million, reflecting renewed market activity.

Arbitrum surged amid renewed market demand

As crypto investors returned to the market, ARB saw renewed demand. For starters, on the spot side, the altcoin Netflow reversed after holding positive for two days and dropped into the negative.

On the 19th of August, the Spot Netflow dropped to -$495k. This trend continued, as at press time, Netflow remained negative at -$80k. With the Netflow holding negative, it suggested that most investors were bullish and withdrew more ARB from exchanges.

The same positive sentiment was observed on the derivatives market. According to CoinGlass data, the altcoin saw higher demand for leveraged positions. 

As a result, derivatives volume surged 122% to $193 million, while the Open Interest climbed 3.3% to $110 million. With both rising alongside each other, it reflected increased activity in the derivatives as traders opened new positions.

Overall, rising demand from across the market has historically preceded major price upswings.

Arbitrum RWA holders hit a new high

In addition to renewed market demand, the Arbitrum protocol is experiencing high activity. Arbitrum reported that Arbitrum One reached a record with the total number of RWA holders exceeding 10,000 for the first time.

Moreover, massive capital flowed into the Arbitrum protocol.  According to Defillama data, USD inflows to the Arbitrum Bridge surged to a four-month high of $324 million.

The rising activity and capital inflow signal increased adoption, with more users now engaged with the network.

Can ARB sustain the rally?

Strengthened by strong market demand and higher network adoption, Arbitrum is experiencing strong upside momentum.

At press time, the altcoin flipped the 20- and 50-day EMAs and was testing the 100-day EMA, reflecting strong short-term upside pressure.

At the same time, the Relative Strength Index (RSI) made a bullish crossover and rose to 67, further confirming this uptrend.

These indicators currently suggest strong upside momentum and a trend’s likelihood to continue. If the recent activity and adoption hold for Arbitrum, ARB will close above the 100-day EMA and try to flip $0.10.

Final Summary

• Arbitrum surged 16%, flipping the 20 and 50-day EMA, reaching a monthly high of $0.09.
• ARB network activity hit a record high, with RWA holders hitting 10k and capital flow reaching a monthly high of $324 million.