• Arbitrum (ARB) has surged 37% in the past week, making it the best-performing cryptocurrency in the top 50 by market capitalization.
• The rally was triggered by an upside break of a downtrend linking a series of highs going back to March.
• Bulls may target psychologically important round numbers and key Fibonacci levels as possible price targets.
Arbitrum Price Prediction Up 37%
Arbitrum (ARB), the token that powers the Decentralized Autonomous Organization (DAO) that runs the Arbitrum blockchain protocol, has pulled back from its recent highs to the north of the $1.70 level and was last trading in the $1.62s, down around 4% on Monday as per TradingView data. However, according to CoinGecko, Arbitrum is still up around 32% in the last seven days, making it the best-performing cryptocurrency in the top 50 by market capitalization, with price predictions still mostly upbeat.
Upside Break of Downtrend
Last Thursday and Friday, Arbitrum burst higher, rallying from around $1.20 to above $1.70 in under two days. The rally was triggered by an upside break of a downtrend linking a series of highs going back to March. The Arbitrum blockchain is a layer-2 scaling solution built on top of the Ethereum network, aiming to lower transaction fees and increase throughput.
Arbitrum DAO Airdrop
Arbitrum officially transitioned to become a DAO with the airdrop of its ARB token on the 23rd of March. Recently there was also an unsuccessful proposal for returning 700 million ARB tokens which could have had major implications for future prices but ultimately failed after being deemed as “power play” by whale investors .
Where Is Next Target?
The fact that Arbitrum has found solid support at its March highs in the $1.60 area suggests that the bull run that began midway through last week has legs. But a lack of price data going back beyond mid-March makes it difficult to pin-point ARB’s next series of targets to the upside. One way to think about price targets would be to target prices that correspond to certain market capitalizations – for example, at current prices ARB needs hit $2