Can Divergence in Arbitrum price & DAA Data Trigger Another Rall

5월 29일

Can Divergence in Arbitrum price & DAA Data Trigger Another Rally
A positive divergence observed between the Arbitrum price and the daily active addresses, suggesting the potential for an upcoming market rally.
With the Arbitrum price surging by over 20% within a week, there's been a substantial rise in the number of active addresses.

Arbitrum (ARB)crypto has been consolidating the gains near the pivotal 50-day Exponential Moving Average. The crypto bottomed out near the $0.95 level and made an upsurge amid the improved sentiments in the broader market.

At the time of writing, the ARB crypto was exchanging hands close to $1.16 level, endeavoring to maintain its upward trajectory in anticipation of a further rally. Additionally, several metrics such as the divergence between price and Daily Active Addresses (DAA) alongside a growing number of active addresses suggest a rising demand.

Lets analyze the metrics in conjunction with the ARB and try to draw a clear picture as to where the price may lead following the impact of the metrics data.
Price And Active Address Showing Divergence!
Moreover, a discernible positive divergence has been noted between the ARB price and daily active addresses count. This divergence suggests a growing engagement among users in recent trading sessions, which could lead to heightened demand and potentially elevate the price further.

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The term 'active addresses' denotes the distinct addresses of token holders engaging in transactions over a specific period. This indicates an uptick in usage and transactions of the token, hinting at an increased demand and valuation as the number of active addresses climbs.

<iframe title="Santiment Chart: Price (ARB), Active Addresses 7d (ARB), Active Addresses 24h (ARB)" width="1170" height="425" src="embed.santiment.net/chart?ps=arb-arbitrum&pt=ARB&df=2024-04-03T00:00:00.000Z&dt=2024-05-29T18:29:59.197Z&emcg=1&emhwm=1&wm=price_usd;active_addresses_7d;active_addresses_24h&wax=0&wc=#26C953;#FFCB47;#FF5B5B&ws={"node":"area"};;" scrolling="no"></iframe>

Typically, a surge in active addresses correlates with a favorable effect on the token's price and its market liquidity. These metrics shed light on both the immediate and extended patterns of a token's market presence and its broader acceptance.
Are ARB Bulls Looking To Conquer $1.5 Next?
The recent trading sessions have witnessed substantial buying activity in ARB, aiding its recovery from multi month lows. Yet, the currency has not fully emerged from its corrective phase to establish a bullish trend.

At present, the price is oscillating around a critical supply zone, showing signs of consolidation. Should the bulls manage to breach the key resistance at the $1.25 mark, it could signal a shift in the trend, potentially leading to a formation of a higher lows on the price charts.

On the higher side, the levels of $1.589 and $1.75 could serve as potential targets for profit-taking for the investors in the event of an upward breakout. Conversely, on the downside, the $1.12 and $1 marks could establish themselves as new support thresholds.
Conclusion.
Arbitrum (ARB) is showing signs of recovery, trading near $1.16 after bottoming out from multi month lows of $0.95. The crypto's consolidation around the 50-day EMA and a positive divergence in Daily Active Addresses (DAA) hint at increased user engagement and demand.

Now, If ARB surpasses the $1.25 resistance, it may confirm a bullish trend reversal. Potential profit-taking levels may be observed near $1.589 and $1.75, while $1.12 and $1 could serve as new supports in case of pullbacks.