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Arbitrum (ARB) Might Be Set for 40% Rebound, Here's Why

Wed, 05/10/2023 - 17:00
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Arman Shirinyan
Arbitrum's price decline may be nearing reversal point, potentially setting stage for 40% growth
Arbitrum (ARB) Might Be Set for 40% Rebound, Here's Why
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The price of Arbitrum (ARB), the largest Layer 2 (L2) token on the market, has been on a steady decline in recent weeks as the hype surrounding the network began to fade. However, it appears that ARB has reached a crucial price threshold that could potentially serve as a reversal point for the token.

Analyzing the price performance of ARB, a pattern has emerged that may suggest a significant rebound is in store. If the token's price follows this previously established pattern, ARB could experience 40% growth as it moves toward the upper border of the channel.

ARB Chart
Source: TradingView

Several factors are contributing to this potential rebound. First, the increasing adoption of L2 solutions in the cryptocurrency industry could drive demand for ARB. As Ethereum continues to face high gas fees and scalability issues, L2 solutions like Arbitrum provide an attractive alternative for developers and users seeking faster and more cost-effective transactions.

Technical analysis also supports the possibility of a rebound. As the ARB token approaches a critical support level, traders may look for buying opportunities, believing that the token has reached its bottom. If ARB manages to hold this support level, it could trigger a new wave of buying pressure, pushing the token's price toward the upper border of the channel and potentially resulting in 40% growth.

Shiba Inu needs another push

Shiba Inu (SHIB) has been experiencing a significant downtrend, losing around 10% of its value recently. As the token's price continues to plummet, many investors are looking for signs of a reversal. Interestingly, SHIB might start showing signs of a recovery if it reaches the $0.000008 threshold, which has previously acted as a critical reversal point.

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As mentioned in a previous article, Shiba Inu's Total Value Locked (TVL) skyrocketed, offering a 120% Annual Percentage Yield (APY) to its investors. This increase in TVL could be the result of the token's liquidity crisis, and the high APY may be an attempt to fix the liquidity issue. Moreover, SHIB's price drop below $0.000009 might have triggered a series of position liquidations and the closing of open LP positions.

If SHIB's price reaches the $0.000008 threshold, it could potentially attract more investors looking for an opportunity to buy the token at a lower price. These new investors may be enticed by the high APY, which could further help alleviate the liquidity crisis and contribute to a possible reversal.

SUI finds way to rebound

SUI, one of the most anticipated assets on the crypto market, has experienced a sharp decline of over 12% after the listing of its perpetual futures on Binance. Users were actively shorting the asset, and concerns about market makers (MMs) potentially selling a significant portion of the supply in the near future further fueled the downward trend.

According to reports, SUI has allocated about 4% of its total supply to market makers, which equates to an additional 400 million tokens being added to the circulating supply. However, some market observers argue that the actual number of tokens allocated is closer to 288 million, meaning that MMs would hold approximately 54% of the circulating supply.

Despite this initial setback, SUI appears to be bouncing back, and new targets are emerging for the asset. The market is likely to see increased demand as investors start looking for potential buying opportunities at lower price levels. As a result, it is essential for traders to keep an eye on key support and resistance levels that may be crucial for determining the asset's future price trajectory.

The first significant resistance level to watch for is the previous all-time high, which may act as a psychological barrier for investors. If SUI manages to break above this level, it could potentially trigger a new bullish trend, with the next target being the Fibonacci extension levels calculated from the recent price decline. These extension levels often provide strong price targets and can help investors identify potential profit-taking points.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.