Arbitrum Price Prediction – ARB Eyes $0.14 as Bulls Take Control

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Arbitrum Price Prediction – ARB Eyes $0.14 as Bulls Take Control

Highlights:

  • Arbitrum is up over 20%, backed by a parabolic rise in trading volumes.
  • Growing Robinhood DEX volumes are a key driver of ARB’s rising momentum.
  • A continuation of the intraday rally could see ARB soon hit $0.14.

Arbitrum (ARB) is one of the top gainers among the top 100 cryptocurrencies intraday. While most major cryptocurrencies are in the red today, Arbitrum is in the green, up 23.71% to stand at $0.106. Arbitrum trading volumes are also up parabolically, rising 687.64% to stand at $528.34 million. 

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The parabolic volume increase, while the price is up double digits, suggests FOMO is building, and Arbitrum could head much higher in the short- to medium-term. The excitement around Arbitrum is rooted in more than just hype; the fundamentals are right as well. 

Growing Robinhood DEX Volumes Drawing Investors to Arbitrum

One of the key drivers of Arbtrum’s momentum is the growing Robinhood DEX volumes. Robinhood DEX is built on Arbitrum’s technology, and as part of this partnership, Arbitrum receives 10% of revenue. The current rally is driven by news that, on August 30 alone, the Robinhood App generated $2.66 million, with 10% going to Arbitrum.

This has created the impression that, through the Robinhood partnership, Arbitrum tapped into a high-growth market that provides real growth projections beyond the usual cryptocurrency hype. The long-term implication is that Arbitrum could start attracting institutional investors interested in cryptocurrencies with demonstrable revenue streams. This, by extension, makes Arbitrum highly undervalued, as it trades at a significant discount to its last all-time high.

Arbitrum Futures Activity Points to Growing Investor Interest

Arbitrum futures are already showing heightened activity, pointing to growing momentum. Data shows that volumes have hit a high of $814 million. At the same time, Arbitrum open interest is up sharply, further indicating strong short-term capital flow and suggesting traders anticipate further upside.

The surge in open interest has also triggered a price breakout, squeezing out short sellers. This is adding to buying momentum, as shorts are being forced to buy ARB to cover their positions. As more shorts are pushed out, ARB could be headed for an even more vertical rally in the foreseeable future. 

Elara Upgrade Further Boosting Arbitrum, But Macro Risks Abound

Arbitrum is also benefiting from the ArbOS Elara upgrade. Through this upgrade, Arbitrum pushed the Stylus contract capacity. With this upgrade, Arbitrum achieved protocol-level compliance as part of its core system. This is a big deal, as it makes Arbitrum more acceptable to institutional capital, and the same could be reflected in its price action over the long term.

However, like other cryptocurrencies, Arbitrum faces major short-term macro risks. One of them is the renewed military action in the Middle East. This has triggered an oil rally, with Brent Crude now trading near $92. Rising oil prices have strengthened the case for a rate cut, with inflation already a sticky issue in the US. Since cryptocurrencies tend to underperform in high-risk environments, Arbitrum could drop in the short- to medium-term. 

Technical Analysis – ARB Breakout of Multi-Month Consolidation

Arbitrum bulls are firmly in control after pushing the price through the $0.10 resistance, ending two months of consolidation. If bulls sustain this momentum, Arbitrum could rally to $0.144 in the short term.

ARB Price Chart
ARB Price Chart: TradingView

However, if the bulls lose momentum, two scenarios could play out in the short term. The first is a new consolidation above $0.10, which is now support. The second is bears taking control and pushing Arbitrum through $0.10. In that scenario, Arbitrum could drop to $0.072 in the short term. Of these scenarios, a rally to $0.144 is more likely. This is due to the Arbitrum revenue play, which is attracting value-seeking investors.

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