Arbitrum (ARB) Experiences 12% Surge Post-Robinhood Listing: Future Prospects

Arbitrum (ARB) has seen a significant price increase of over 12% within the last day following its debut on Robinhood. This robust rise has generated a considerable buzz among traders and investors. The market capitalization of ARB has now reached an impressive $1.8 billion, while trading volume surged to $400 million during this event.

However, despite this upward movement in price, technical indicators reveal that ARB is still entrenched in a downtrend. That said, there are hints that buyers are starting to assert control over the market.

Technical Indicators: DMI Chart Shows Buyer Momentum

Since the announcement of its listing on Robinhood, notable changes have emerged in Arbitrum's Directional Movement Index (DMI) chart. The Average Directional Index (ADX) reflecting trend strength has dipped slightly to 28.4 from 30.6, indicating a potential weakening of the prevailing downtrend. Meanwhile, the +DI increased significantly from 13.5 to 29.3, while the -DI decreased from 37.3 to 25.2. This transition suggests a growing buying momentum while selling pressure is diminishing.

Although ARB remains in a downtrend, recent movements indicate a possible trend reversal if bullish sentiment continues to strengthen.

Active Addresses on the Decline

Despite the recent surge in price following its Robinhood launch, the number of active addresses on the Arbitrum chain has been steadily declining since December. Currently, the 7-day Active Addresses metric is approximately 36,400, a stark reduction from the 110,000 active addresses noted on December 7, when ARB was valued around $1.23.

While the listing on Robinhood sparked short-term speculation, the long-term resilience of ARB's price may be in jeopardy if on-chain engagement continues to diminish. Tracking active addresses is vital as it reflects true user participation and network utilization, and a decrease may indicate waning interest in the blockchain.

Price Predictions for March

According to the Exponential Moving Average (EMA) lines, Arbitrum remains in a downtrend, with short-term averages positioned below long-term ones. Nevertheless, following the recent price uptick, short-term EMA lines are beginning to show upward trajectories.

If this momentum persists, ARB could challenge resistance at $0.438. A breakout above this threshold could pave the way for further gains, possibly reaching $0.466 or even $0.51. The sustainability of this upward movement hinges on whether buying pressure remains robust enough to shift the previous downward trend.

Conversely, if ARB is unable to maintain this positive momentum, it may revert to its downtrend, leading to a retest of the $0.38 support level. A decline below this critical area could suggest greater weakness, pushing the price down to $0.349, and if that occurs, ARB could fall below the $0.35 mark for the first time, enhancing bearish sentiment.