Newton Gitonga
The crypto sector displays mixed actions, with Bitcoin’s weakening impetus suggesting an imminent altcoin season.
Alts have started outperforming BTC, and analysts expect the trend to continue in the coming months.
Arbitrum (ARB) is among the tokens capitalizing on the improving trends with notable price actions.
The altcoin gained nearly 20% within the past week, and on-chain observations support more upswings.
The latest announcement shows that Arbitrum One has become the first layer2 project to hit $20 billion in total value locked.
Arbitrum One has just become the first L2 to hit $20 billion in TVL.
We did this by innovating together.
With Stage 2 on the horizon, and ecosystem growth happening in all verticals, the sky’s the limit for how far we can scale.
Accelerate.
That confirms the surging adoption and popularity of the Arbitrum blockchain.
The 20 billion TVL makes ARB’s ecosystem perfect for decentralized finance activities, positioning the native token for significant growth.
ARB price outlook
The altcoin trades at $1.01 after a nearly 5% gain on its daily chart.
Arbitrum exhibits massive bullish momentum, hinting at continued surges.
For instance, the 50% uptick in 24-hour trading volume suggests amplified trader optimism, which could support extended gains.
Moreover, the latest uptrends saw ARB overcoming the crucial resistance range at $0.96 – $0.98.
That opened the path for more upsides to $2.4 – where immense liquidity exists.
That would mean a remarkable 137% price increase from current values.
The broad market optimism, with all eyes on the highly anticipated altcoin season, supports ARB’s upside stance.
Altcoin season in play
The “alt season” narrative is gaining attention as more altcoins continue to outshine Bitcoin.
The altcoin season index is 80, reflecting a notable jump from 23 one month ago.
In that context, the altcoin season index tracks the performance of Bitcoin against the top 50 cryptocurrencies.
Figures at 25 show Bitcoin dominance, whereas above 75 signal the beginning of an alt season.
Meanwhile, the prevailing levels mark the highest point the altcoin season index has hit since January 2022.
The phase saw massive uptrends for altcoins until March.
Crypto expert Reck Capital supported this stance with his latest X post.
He highlighted a declining BTC dominance, which confirmed cash flowing into the altcoin ecosystem.
Furthermore, the TOTAL2 indicators, which measure the market capitalization of the top 125 alts, indicate a bull flag emerging on the 72-hour chart.
The bull flag is an optimistic chart setup comprising two rallies divided by a brief consolidation.
The pattern starts with a steady uptrend, the flagpole, as bulls outweigh bears.
A pullback follows (forming a flag) with equivalent lower and upper trendlines, supporting uptrend continuation.
With this setup, TOTAL2 could skyrocket past $1.45 trillion.
That would trigger explosive price gains in the altcoin space, with many tokens potentially surpassing their ATHs.
Such an environment, with Arbitrum’s stable ecosystem and venture into AI, could see ARB exceeding resistances to hit the $2.4 target.
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