ARB Price Prepares for Big Jump as Arbitrum Transaction and Fees Soar

The Arbitrum token may be on the verge of a strong bullish breakout as the growth of its ecosystem continues.

Arbitrum (ARB) price fell to $0.700, down 45% from its highest level in December last year.

Third-party data shows that the Arbitrum ecosystem is performing well. According DeFi CallOn-chain token volume has increased 118% in the last seven days to $10.15 billion, its best week in months.

Uniswap (UNI) was the most active player in the ecosystem, handling a volume of $6.2 billion. Camelot, Pancakeswap and Maverick Protocol followed.

More data from Nansen shows that the number of active addresses on the network increased by 77% to 2.43 million in the last 7 days. This growth increased the number of transactions by 35% and fees by 182% to over $1 million.

Arbitrum has a long way to go to catch up with Base, which has become the largest Layer 2 network in the crypto industry. Base had over 5.6 million active addresses, over 50 million transactions, while its active fees increased 13% to $3.7 million.

Arbitrum price could recover soon

The daily chart shows that the ARB price reached a high of $1.2420 in November last year and has now retreated to $0.70. Its highest level in November was an important level as it coincided with the swing highest in May of last year. It was also the top of the cup and handle pattern, a popular continuation sign.

Another positive catalyst is that Arbitrum has formed a falling wedge pattern, which is made up of two descending and converging trend lines. These two lines are approaching their confluence levels, indicating a possible rebound.

A bounce will push Arbitrum price to $1.2470, the upper side of the C&H, which is about 76% above the current level. The depth of the cup is approximately 70%. Therefore, measuring the same distance from its upper side means that Arbitrum price will reach $2.13. A break below the $0.4626 support will invalidate the bullish view.