Arbitrum (CRYPTO: ARB) continued its strong rally and is nearing its highest level this year, helped by the ongoing Robinhood (NASDAQ:HOOD) Chain momentum. ARB jumped to $0.2051, up by nearly 200% from its lowest point this year, with its market capitalization hitting $1.2 billion.
Robinhood Chain is Gaining Momentum
In a year defined by a broader crypto winter, Robinhood Chain has emerged as one of the industry’s biggest breakout stars. Launched in July, it has become the fastest-growing layer-2 chain in the crypto space, with most of its key metrics surging.
Data compiled by DeFi Llama shows that nearly 200 dApps in decentralized finance (DeFi) have been launched on the chain. These dApps, led by Morpho Blue, Steakhouse Financial, Uniswap, and Lighter, have accumulated over $908 million in total value locked (TVL).
The same growth is happening in the stablecoin industry, where the supply, led by USD Coin (CRYPTO: USDC). Its stablecoin supply has jumped to $964 million, and the surge is continuing. Also, the DEX and Real World Asset (RWA) volume have continued rising this month.
As a result, Robinhood Chain’s fees have continued rising, reaching over $21 million this month. This is important for Arbitrum because Robinhood Chain is built using its technology. As a result, Arbitrum Foundation is making substantial sums of money since it takes a 10% cut for all transaction fees. It has made over $2.1 million this month after making $710k last month.
This growth has helped to curb Arbitrum’s weakness, which saw its DEX volume and stablecoin supply drop. Arbitrum’s total value locked dropped to $1.25 billion from $3.7 billion at its highest point last year, while its chain fees fell to just $1.2 million last quarter.
Arbitrum Price Prediction: Technical Analysis
ARB price chart | Source: TradingView
The daily chart shows that the ARB token formed a strong bottom at $0.0708, its lowest level in June, July, and August. That was a sign that bears were hesistant to open trades below that price.
Arbitrum token then rebounded and crossed the important resistance at $0.1497, its highest point on May 9 this year. It has soared above the 50-day moving average, a sign that bulls have prevailed.
The risk, however, is that the token has become overbought, with the Relative Strength Index (RSI) moving to 84. It is also forming a shooting star candlestick, which often leads to a reversal. If this happens, the token may retreat to the key support level of $0.1497.
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