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Good News For Arbitrum Holders, Arbitrum Can Soon Touch $2

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  • Arbitrum has recently crossed a key resistance level for the first time after August 2023. ARB’s price also increased by 2% in the last 24 hours. 
  • While the price of ARB increased, its trading volume decreased in the last 24 hours.
  • Investors had tremendous trust in ARB, but signs were bearish. 

Arbitrum [ARB] has recently broken through a critical resistance level. This move hinted that the token’s value could rise even more. 

As a result, let’s take a closer look at ARB’s on-chain data and market indicators to see if investors should expect ARB to reach $2 anytime soon.

Arbitrum’s Price Move Appears To Be Ambitious 

Crypto Tony, a renowned crypto influencer, recently tweeted on X (previously Twitter) about how ARB broke through a crucial resistance level. According to the tweet, ARB has surpassed the $1.07 level.

The token was able to do so for the first time after mid-August 2023, implying that its price will rise more in the days ahead.

According to CoinMarketCap data, ARB’s price is really rising. In the last 24 hours, the token’s value has increased by more than 2%.

ARB was trading at $1.10 at the time of writing, with a market capitalization of more than $1.39 billion. This increased the likelihood that ARB would reach $2. A closer look, however, revealed a different picture.

Arbitrum Price Chart | Source: Coinstats

While the token’s price increased, its trading volume decreased, indicating that investors were unwilling to trade it. Arbitrum’s market sentiment has likewise shifted bearish, with bullish sentiment dropping by more than 52% in the previous 24 hours, as has social engagement.

Nonetheless, a number of the token’s metrics remained positive.

Read Also: BNB Price Shows Signs of Life But $250 Is The Key To More Upsides

Arbitrum’s AltRank, for example, improved, increasing the likelihood of a sustained price surge. Not only that, but the token’s MVRV ratio increased significantly. Its network growth has remained strong, which means that more new addresses have been created to trade the token.

The confidence of whales and investors in ARB has also remained high. The fact that ARB’s whale transaction count and overall number of holdings climbed over the last week demonstrates this.

Total Number of Arbitrum Holders
Total Number of Arbitrum Holders

Looking Ahead

Arbitrum’s Relative Strength Index (RSI) had crossed into the overbought zone, which can put selling pressure on ARB and cause its price to fall. ARB’s Bollinger Bands were another bearish indication.

The indicator suggested that the price of ARB had reached its upper limit, raising the likelihood of a trend reversal. Despite this, the MACD demonstrated a clear bullish advantage in the market. Its Chaikin Money Flow (CMF) was also updated, indicating that the price increase is continuing.

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Binance Lists ChainGPT (CGPT): Unlocking a New Era for AI-Powered Blockchain Solutions

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Binance Lists ChainGPT (CGPT): Unlocking a New Era for AI-Powered Blockchain Solutions – BitcoinWorld
































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$88K Critical for Bitcoin Momentum

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Bitcoin’s price trajectory is at a pivotal juncture, with $88,000 emerging as a key level for sustaining market momentum, according to on-chain analytics firm Glassnode. Using the UTXO Realized Price Distribution (URPD) metric, Glassnode emphasized the significance of the Short-Term Holder (STH) cost basis, noting minimal trading volume below this threshold.

The $88,000 level serves as a critical psychological and technical support, and a decisive loss could pave the way for further downside. This article explores the importance of this metric and what it could mean for Bitcoin’s future price movement.


Understanding Bitcoin’s STH Cost Basis

The Short-Term Holder (STH) cost basis represents the average price at which recently acquired Bitcoin has been purchased. This metric is essential for analyzing:

  • Price Momentum: Indicates the health of recent buyer confidence.
  • Support Levels: Highlights crucial price points where short-term investors are likely to defend positions.

At $88,000, the STH cost basis underscores its significance as a level where short-term traders might capitulate if breached, potentially triggering a larger sell-off.


The Role of the URPD Metric

Glassnode’s UTXO Realized Price Distribution (URPD) metric maps the distribution of Bitcoin trading volumes across different price levels. Key insights from the current analysis include:

1. Minimal Volume Below $88K

  • Glassnode’s data reveals limited trading activity beneath $88,000, suggesting weak historical support in this range.

2. Vulnerability to Downside Pressure

  • A breakdown below $88,000 could lead to accelerated selling, as short-term holders exit positions to minimize losses.

Why $88K Is Critical for Bitcoin

1. Psychological Benchmark

  • Round numbers like $88,000 hold psychological significance for traders, influencing decision-making and market sentiment.

2. Technical Relevance

  • The STH cost basis aligns closely with support and resistance levels derived from historical price action, making it a reliable marker.

3. Momentum Indicator

  • Holding above $88,000 would demonstrate resilience, while a breach could signal a shift in momentum toward bearish conditions.

Potential Scenarios Based on $88K Level

1. Holding Above $88K

  • Sustaining this level could reaffirm Bitcoin’s bullish momentum, encouraging accumulation by both short-term and long-term holders.
  • Positive macroeconomic news or institutional support could bolster price stability.

2. Breaching $88K

  • A decisive loss of $88,000 might lead to panic selling, increasing volatility and pushing Bitcoin toward lower support levels.
  • Traders may target $85,000 or lower as the next critical support zone.

Market Sentiment and Influences

1. Institutional Activity

  • Institutional investors closely monitor key levels like $88,000, adjusting strategies based on market strength or weakness.

2. Broader Economic Factors

  • Macroeconomic elements, including interest rate policies and inflation data, continue to impact risk assets like Bitcoin.

3. Short-Term Trader Behavior

  • As the primary holders at this cost basis, short-term traders play a pivotal role in determining Bitcoin’s near-term price movements.

How Traders Can Respond

1. Monitor Key Levels

  • Keep a close watch on Bitcoin’s behavior around $88,000, as this level is crucial for gauging momentum.

2. Set Stop Losses and Alerts

  • Traders should establish clear stop-loss levels to minimize risk in case of a breakdown.

3. Consider Accumulation Opportunities

  • If Bitcoin holds above $88,000, it could present a buying opportunity for those confident in a bullish continuation.

FAQs

1. Why is $88,000 significant for Bitcoin?
The $88,000 level represents the Short-Term Holder (STH) cost basis, a critical indicator of price momentum and market confidence.

2. What happens if Bitcoin drops below $88,000?
A loss of this level could trigger selling pressure, as short-term holders exit positions, potentially leading to further downside.

3. What is the URPD metric?
The UTXO Realized Price Distribution (URPD) metric tracks Bitcoin’s trading volume at different price levels, highlighting key areas of support and resistance.

4. How does $88K influence market sentiment?
Maintaining this level reinforces confidence in the market’s bullish momentum, while losing it could shift sentiment toward bearish expectations.

5. What should traders do at this level?
Traders should monitor Bitcoin’s performance around $88,000, set stop-loss levels, and consider accumulation if the level holds.


Conclusion

The $88,000 level is more than just a price point; it’s a pivotal marker for Bitcoin’s momentum and market sentiment. Glassnode’s analysis underscores its significance as the Short-Term Holder cost basis, with the potential to dictate Bitcoin’s next move.

Whether Bitcoin sustains this critical level or breaches it will determine its trajectory in the coming weeks. For traders and investors, staying vigilant and adapting strategies to this key metric will be essential in navigating Bitcoin’s dynamic market.

To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential.

Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Mantra Partners with UAE Real Estate Giant Damac to Tokenize $1B in Assets

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