On April 25, 2023, Arbitrum conducted a $120 million "DAO airdrop," a significant event in the world of cryptocurrencies during the first quarter of 2023. This airdrop rewarded early adopters and marked the official transition of the Ethereum Layer-2 (L2) protocol to a decentralized governance model.
After the dust settles following an airdrop, on-chain activity, and value transfer metrics typically decrease for blockchain ventures. Nonetheless, Arbitrum defies this trend.
During the airdrop, 11,312 new users joined the Arbitrum network and received $120 million worth of ARB tokens. Unbelievably, in June 2023, the network maintained similar levels of expansion.
Recent data indicate that the development of the Arbitrum network has increased by 46% over the last three trading sessions. The network received 3,252 new addresses on June 18 and 4,747 additional wallet addresses by the end of June 21.
As evidenced by the increasing network traction, ARB's price experienced a positive effect this week. If this trend continues, ARB's price will likely reach a new all-time high shortly.
Let’s see the upcoming Arbitrum (ARB) Price Prediction from the ARBUSDT technical analysis:
ARB/USDT Bullish Possibility Is Potent From The Wedge Breakout
In this technical analysis of ARB/USDT, the current price trades within a bullish pressure from the falling wedge breakout.
After setting a top on 24 March 2023, sellers joined the market and made two consecutive lows at 1.0139 and 0.9082 levels. As the current price is aiming higher with a trendline breakout, a bullish trend continuation opportunity will likely happen.
The current 14-period Relative Strength Index (RSI) shows a bullish recovery above the 50.00 line in the indicator window. It is a bullish sign for the ARB price as more upward pressure may come until the RSI reaches 70.00.
In the primary chart, the dynamic 20-day EMA is below the current price and working as an immediate support level. In that case, any minor bullish rejection from the 20 EMA could be a strong bullish opportunity.
Based on the daily Arbitrum Price Prediction, the first buying opportunity may come from a bullish rejection from the dynamic 20 EMA support level, which can increase the price towards the 1.5000 swing high.
However, the bullish opportunity is valid if bulls hold the daily candle above the 0.9000 critical level. A bearish pressure with a D1 candle below this level could extend the bearish pressure toward the 0.7000 critical psychological level.
ARB/USDT Ichimoku Cloud Analysis
In the 4-hourly chart, the broader outlook of ARB/USDT is bullish as the current price holds momentum above the dynamic Cloud support. In that case, the primary trading idea is to look for long opportunities, targeting the 1.2800 level.
In the future cloud, the Senkou Span A is above B with a stable momentum, while the Lagging Span is above the current price. Moreover, a bullish breakout above the Cloud support came with impulsive pressure, which is still holding the momentum.
The Traders Dynamic Index Indicator shows a sideways pressure as the current TDI level is above the 50.00 neutral zone.
Based on the Ichimoku Cloud ARB Price Prediction, a minor downward correction is pending, where the ultimate area for the bearish pressure is the 1.0640- 1.0241 inefficiency zone. A bullish rebound from the inefficiency or dynamic Kijun Sen could be an early buying opportunity, targeting the 1.5000 psychological level.
On the other hand, bears should wait for the price to come below the 0.9800 level, increasing the possibility of testing the 0.9000 psychological support level.
ARB/USDT Intraday Price Action Analysis
As per the intraday price outlook, the visible range high volume level is below the current price, which is a primary sign of bullish momentum.
In the main chart, the dynamic 20 SMA and weekly VWAP are working as confluence support, but the recent price shows a corrective pressure at these levels, which may violate this zone.
The indicator window shows a seller’s presence as the current MACD Histogram is below the zero line,
Based on this outlook, sellers may extend the momentum with a trend line breakout, which may lower the price toward the 1.0400 area. However, a bullish rebound from the 1.0824 level could be a potential buying opportunity in this pair, targeting the 1.2500 level.
On the other hand, a solid downside pressure with an H1 close below the 0.9800 level could limit the buying possibility.
Is ARB/USDT A Buy?
Based on the current price outlook, ARB/USDT's buying possibility is solid from the falling wedge breakout, where the primary target is testing the 1.5000 key psychological level. Investors should closely monitor the H1 price to identify a solid rebound from the valid support level to join the bullish rally.