Arbitrum (ARB) set for gains 🚀 Timing slightly delayed 😕

Assessing Arbitrum’s Current Market Position

When analyzing Arbitrum (ARB)’s recent performance in the trading session on May 28, bulls were seen to take control, driving the Layer 2 (L2) token’s price above its critical 20-day exponential moving average (EMA). While this might suggest a potential shift towards an upward trend, it is essential to consider other key technical indicators to understand the full picture.

Arbitrum Distribution Compared to Accumulation

Arbitrum’s Relative Strength Index (RSI) is below the 50-neutral zone at the moment, indicating momentum in assets’ price movement.

An RSI value above 70 suggests overbought assets, while below 30 indicates potential oversold conditions.

Despite trading above a primary moving average, ARB’s sell-offs still exceed its accumulation, as suggested by the RSI value of 44.50.

The Selling Pressure on Arbitrum

Further confirming the increased selling pressure on ARB, the token’s Chaikin Money Flow (CMF) currently stands at a negative value of -0.09. This indicator is crucial in assessing buying and selling pressure within asset price movements. A negative CMF signifies more money flowing out on down days, indicating potential investor distribution.

Future Trading Predictions for ARB

The decrease in ARB’s daily active addresses in the past week suggests a possible downward correction in its price. Despite this, ARB’s futures traders continue to show a bullish outlook, with positive funding rates on cryptocurrency exchanges.

Positive Funding Rates and Trading Outlook

Positive funding rates signal a stronger demand for long positions in perpetual futures contracts, indicating a bullish sentiment.
This positive outlook may lead to higher demand for ARB, potentially keeping its price above the 20-day EMA and trading at around $1.2.

Arbitrum’s Potential Price Movements

As the market dynamics continue to evolve, it is crucial to monitor the balance of bullish and bearish forces influencing ARB’s price trajectory. If bears maintain control, ARB’s value could see a drop to $1.11.