Arbitrum price has formed a highly bullish chart pattern ahead of its monthly tokens later this week. The ARB token was trading at $0.3105 on Sunday, down by over 75% from its highest point in December. It is hovering near its all-time low, making it one of the worst-performing cryptocurrencies.
Arbitrum Price Steady Ahead of the Unlock
Arbitrum has grown to become the second-biggest layer-2 network in the cryptocurrency industry after Base.
It is preferred among developers interested in Ethereum’s security while cutting their transaction costs.
Arbitrum will be in the spotlight this week for three main reasons. First, third-party data shows that its cumulative DEX volume has jumped to over $352 billion. The network, handling almost $5 billion a month, may hit the $500 billion milestone this week.
Uniswap, the largest DEX network on its platform, has aided this growth, which has crossed a $300 billion cumulative volume. The other top DEX networks on Arbitrum are Fluid, PancakeSwap, and Camelot.
Second, Arbitrum will have a token unlock of 93.2 million worth $28.9 million on April 16. Its large monthly unlocks, as well as those that happen daily, will continue until 2028, when all 10 billion tokens are unlocked.
Token unlocks are seen as being highly inflationary as they increase the number of tokens in circulation, diluting existing investors.
READ MORE: Bitcoin Price Shows Bottoming Signs as BTC ETF Outflows Continue
Arbitrum Price Forms a Falling Wedge
The third reason why the Arbitrum price will be in the spotlight is that it has formed a falling wedge pattern. This pattern is made up of two falling and converging trendlines. In this case, the upper side of the wedge connects the highest points since December 12th. The lowest side of the wedge connects the lowest swings since January.
This pattern’s convergence indicates that a bullish breakout may happen soon. Simultaneously, the Relative Strength Index (RSI) points upward and nears the neutral point at 50. Also, the Awesome Oscillator has formed a bullish divergence pattern.
Therefore, the coin will have a strong bullish breakout. The next key target to watch is $0.8210, the highest swing in July last year. Such a move would be a 165% surge from the current level.
READ MORE: Hedera Price Prediction: HBAR Rare Pattern Signals a Surge
