Analysts Optimistic as Arbitrum Record 2M Daily Transactions

Arbitrum transaction volume doubles in two months, reaching 2M daily as analysts predict a rebound for ARB based on TD Sequential data.

Arbitrum is witnessing a surge in transaction volume. Data shared by DeFi intelligence platform IntoTheBlock on X reveals that transactions have more than doubled since early March, reaching over two million daily transactions as of May 8. This sharp rise contrasts the early March average of around one million transactions daily. 

Arbitrum transactions are surging👀

Since early March, the number of transactions on Arbitrum has increased strongly, reaching over 2 million daily transactions yesterday—a significant rise from the early March average of ~1 million. pic.twitter.com/D169IAE18L

— IntoTheBlock (@intotheblock) May 9, 2024

In the initial phase, transaction volumes consistently stayed below 500K. The trend was relatively flat, pointing to low activity or stable operations. The consistent pattern implied a lack of substantial growth or decline. 

Going further, Arbitrum saw a rapid increase in transaction activity in November 2022, leading to a peak of over 600K transactions in January 2023. However, this peak was short-lived, as transaction volume quickly declined afterward.

Arbitrum Flashes Buy Signal

Following a subsequent spike in March 2023, transaction volume dropped sharply again, fluctuating between 500K and 1.5 million transactions. Nonetheless, from November 2023 onwards, Arbitrum’s transaction volume gradually stabilized and began to grow, culminating in the recent surge.

In addition to transaction trends, analyst Ali Martinez identified a buy signal on Arbitrum’s weekly chart, as the TD Sequential indicator suggests a looming resurgence. This indicator, which often predicts buy opportunities after trend exhaustion, anticipates a rebound for ARB over the next one to four weeks.

The TD Sequential presents a buy signal on the #Arbitrum weekly chart. It anticipates a one to four candlesticks rebound for $ARB! pic.twitter.com/ITylXqmVF2

— Ali (@ali_charts) May 9, 2024

Currently, Arbitrum (ARB) is priced at $1.02, with a 24-hour trading volume of $267 million. Despite a slight price increase in the past day, ARB saw a 1.60% decline over the past week, underperforming both the overall cryptocurrency market and comparable Ethereum ecosystem tokens.

Forecasts suggest ARB could recover to $2.57 by Q4 2024 if it maintains its current momentum. Although the token saw a 30% drop recently, it has since rebounded, and analysts believe breaking past the $2 barrier could signal new heights, based on the Relative Strength Index and Moving Average Convergence Divergence indicators.