Assessing Arbitrum protocol’s current status, should you expect a bull run
- The number of ARB token holders has increased.
- Activity on the Arbitrum protocol continues to rise, thus rivaling Ethereum.
The journey of the ARB token has had its share of ups and downs. After the launch of the ARB on the Arbitrum protocol, the interest in both the token and the network skyrocketed. However, as time passed, the interest in ARB began to decline along with its price.
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Even though ARB’s price has started to decline, there seems to be a resurgence in investors’ interest. Token Terminal’s data indicated that the number of ARB holders increased by 5.3% in the last seven days.
People are buying $ARB Dip.
Number of TokenHolders increased by +5.3% in past 7 days. pic.twitter.com/KKmZYzK4lb
— hkm.eth (@hmalviya9) May 13, 2023
The spike in the number of token holders points towards a bullish future for the ARB token.
Moreover, despite the fact that the number of token holders increased, the overall network growth continued to decline.
Well, the network growth indicator is used to determine if new addresses are interested in the ARB token by gauging their activity.
A falling network growth suggests that the number of token holders increased because old addresses who have faith in ARB were accumulating the token at a discount.
In terms of velocity, the ARB took a hit. This meant that the frequency with which ARB was being traded amongst addresses was beginning to decline.
The journey so far
At press time, Arbitrum was trading at $1.171. Its price declined by 21.88% after hitting the resistance level of $1.507 on 26 April. Of late, ARB has been trading between the range of $1.22 and $1.055.
Notably, the price started picking up bullish momentum in the last 24 hours which was supported by the rise in the number of token holders.
The Relative Strength Index (RSI) of ARB exhibited an upward trend in tandem with its price, ultimately reaching 54.82. With an RSI of 54.82, ARB’s price may still have some room to increase before reaching the overbought zone, which typically begins at an RSI level of 70.
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Despite the price increase, the Chaikin Money Flow (CMF) demonstrated a bearish divergence by decreasing to -0.14.
The surge in ARB’s price has been accompanied by a significant increase in activity on the Arbitrum protocol, with data from Delphi Digital indicating that the daily activity on Arbitrum has been on par with that of Ethereum in recent days.
— Delphi Digital (@Delphi_Digital) May 13, 2023