Arbitrum token could be on the verge of a strong bullish breakout as ecosystem growth continues.
Arbitrum (ARB) price has fallen to $0.700, down 45% from its highest level last December.
Third-party data shows that the Arbitrum ecosystem is on track. According to Defi Llama, the amount of tokens on-chain has increased by 118% to $101.5 billion in the past seven days.
UNISWAP (UNI) is the most active player in the ecosystem, processing a volume of $6.2 billion. It was followed by Camelot, Pancakeswap and Maverick protocols.
More data from Nansen shows that the number of active addresses in the network has increased by 77% over the past seven days to 2.43 million. This growth resulted in a 35% increase in the number of transactions and a 182% increase in fees to over $1 million.
Arbitrum has a long way to go to catch up with its base, which makes it the largest Layer 2 network in the crypto industry. The base had over 5.6 million active addresses and over 50 million transactions, while its active commissions increased 13% to $3.7 million.
Arbitrum price may rebound soon
The daily chart shows that ARB price peaked at $1.2420 last November and has now returned to $0.70. The highest level in November was an important level because it coincided with the highest swing last May. It was also the top of the cup and handle pattern, which was a popular continuity sign.
Another positive catalyst was that Arbitrum formed a falling wedge pattern. It consists of two falling and converging trend lines. These two lines are nearing the confluence level, indicating a potential rebound.
The rebound pushes the upper arbitrum price of C&H to $1.2470. This is about 76% above current levels. The depth of the cup is approximately 70%. Therefore, by measuring the same distance from the top side, it means that the price of arbitrum is $2.13. A break below the support at $0.4626 invalidates the bullish view.
