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The price of Arbitrum has risen, bringing altcoins significantly closer to their all-time highs. This move could also bring substantial profits to thousands of investors.
However, even the slightest pullback could mean millions of dollars in losses for ARB investors. What could be the potential outcome?
Arbitrum Price Needs a Nudge
Arbitrum’s trading price is at $2.16, nearing its all-time high. The previous high of $2.42 was established earlier this year, and ARB needs an 11% increase to break through this level. The likelihood of this happening is high for two reasons: investor support and market conditions.
ARB holders may be prepared to delay selling until surpassing the aforementioned level. This is because approximately 64 million ARBs, valued at over $140 million, are on the verge of profitability.
Secondly, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) currently indicate bullish sentiment. The RSI is a momentum oscillator that measures the speed and change of price movements, indicating overbought and oversold conditions.
On the other hand, the MACD is a trend-following momentum indicator that shows the relationship between two moving averages of an asset’s price. It consists of the MACD line, a signal line, and a histogram, which helps identify trend changes and momentum shifts.
The former is in the bullish zone above the neutral line, while the latter indicates an active bullish crossover.
ARB Price Prediction: Watch This Level
Given the conditions mentioned above, Arbitrum’s price has enough momentum to complete an 11% rise in the coming days, bringing profitability to 64 million ARBs. At the same time, doing so would also lead to a new all-time high for the altcoin.
However, given that ARB has been consolidating sideways for the past few days, a potential drop cannot be ruled out if investors choose to sell.
A solid support floor is at $2.00, but losing this level could invalidate the bullish argument, as ARBs valued at $841 million would face losses. Therefore, Arbitrum’s price might eventually test $1.68 as the next support level.
Sentiment: Positive
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