Arbitrum The price of (ARB) has broken above a key resistance level amid a rally in the overall cryptocurrency market over the past 24 hours.
The 17% price increase of the token, which was trading at $1.15 at the time of writing, in the last 24 hours reflects the 8% increase in global cryptocurrency market capitalization during this period.
Arbitrum Sees Increase in Ascension Activity
Due to increased activity around ARB in the last 24 hours, the token has seen a significant increase in trading volume. At $1.04 billion at press time, token trading volume is currently at its highest single-day level since March 21.
When the price of an asset rises along with its trading volume, this is considered a bullish signal. This indicates that more investors are interested in purchasing the asset and increase the price.
The increase in market interest in ARB is depicted in rising futures open interest. Thus, the futures open position of the token, which is at the level of 243 million dollars, increased by 19% in the last 24 hours.
ARB’s futures open interest tracks the total number of futures contracts or positions that have not yet been closed or settled. When it rises this way, it indicates an increase in market activity as more market participants move in to open new positions.
ARB Price Forecast: Why Bulls Shouldn’t Relax
Besides climbing above the $1.13 resistance, ARB’s price is now above the 20-day Exponential Moving Average (EMA) and the 50-day Minor Moving Average (SMA).
Conversely, when the price of an asset breaks above these important moving averages, this is seen as a bullish signal because it indicates that the asset’s recent and medium-term price movements are positive. Investors see this as a signal that the asset in question is experiencing upward momentum.
altcoin Confirming the rise in demand, ARB’s Relative Strength Index (RSI) is in an uptrend at 57.12. Also, at this value, the momentum indicator showed that ARB accumulation was preferred to distribution.
If this accumulation momentum continues, the price of ARB could reach $1.17.
However, if buyers run out, the bears could regain control. This would allow them to push the price of ARB below resistance and force it to trade at $1.09.
