ARB price has been moving downward since the trend reversed after the March mini-bull run. However, with the latest news of the Arbitrum DAO approving a staking proposal, the price of ARB looks to be gearing up for a bullish breakout that could result in over 50% gains in the short term. ARB price hovered around $0.546 during the New York trading session, a 1.4% drop over the last 24 hours.
ARB Price Revival Likely as Arbitrum DAO Approves Staking
The Arbitrum DAO has approved the proposal to enable ARB staking on the Layer 2 network. The proposal was published by Frission, an Arbitrum delegate, on June 24 because he observed the ARB token was struggling to accrue value and its usage as a governance token.
The Arbitrum DAO has approved the proposal through a vote that received 91% approval from over 25,000 voters.
According to Frisson’s proposal, the next item on the checklist after the approval of the temperature check proposal would be an on-chain proposal on Tally for $200,000 in funding to cover the development cost.
If this proposal passes, the development of the staking platform will begin in August.
Arbitrum Price Eyes Reversal
The ARB price chart shows the asset is in a prolonged downtrend but moving inside a falling wedge, typically a bullish reversal pattern. The market has not yet priced in the news of the Arbitrum DAO’s proposal to begin staking.
ARB is trending below the 21 and 50 exponential moving averages, which also serve as resistance levels, suppressing the price action.
The asset began moving up on August 8, following the market-wide crash, and is forming higher highs. If it continues on this path, ARB may break out of the falling wedge on a 51.48% rally to the immediate resistance level at around $0.8124.
According to Coinglass, over $1.276 million of buy limit orders between $0.52 and $0.53 have not yet been filled.
This buy wall may sustain the ARB price up, but if broken, it might signal weakness in the market, causing Arbitrum to drop to $0.49, which has acted as support recently and could potentially hold again if tested.
The Relative Strength Index (RSI) and Bollinger Bands suggest a potential for a short-term bounce as Arbitrum price signals oversold conditions.
ARB remains in a strong downtrend with the potential for further declines as per our Arbitrum price analysis. However, the proximity to the support level and oversold RSI could offer a short-term buying opportunity for a bounce and, potentially, a 50% breakout.
Frequently Asked Questions (FAQs)
The ARB price has recently been impacted by the Arbitrum DAO’s approval of a staking proposal. This proposal was aimed at improving the value of the ARB token and its usage as a governance tool on the Layer 2 network.
If the funding proposal is approved, development for the staking platform is expected to begin in August.
while there is potential for a bounce and a 50% breakout, ARB remains in a strong downtrend with possible further declines. Investors should watch for signs of a short-term bounce and consider the overall market conditions before making investment decisions.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/arb-price-to-skyrocket-50-as-arbitrum-dao-approves-staking-proposal/
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