A widely followed crypto analyst says that Ethereum (ETH) layer-2 scaling solution Arbitrum (ARB) could be flashing a potentially bullish indicator.
In a new thread, crypto trader Ali Martinez tells his 61,900 followers on the social media platform X that ARB’s Tom DeMark (TD) Sequential Indicator has presented a buy signal on the asset’s weekly chart.
“It anticipates a one to four candlesticks rebound for ARB!”
Traders use the TD Sequential Indicator to predict potential trend reversals for tokens based on the closing prices of their 13 previous bars or candles.
ARB is trading at $1.04 at time of writing. The 47th-ranked crypto asset by market cap is up nearly 2% in the past 24 hours but down more than 30% in the past month.
Martinez also notes that Bitcoin (BTC) has been consolidating for 70 days.
The analyst says that Bitcoin’s Market Value to Realized Value (MVRV) 90-day ratio indicates the top crypto asset is still in a “prime buy zone” despite its price surge this week.
MVRV is the ratio of Bitcoin’s market capitalization relative to its realized capitalization (the value of all BTC at the price they were bought). It is used to assess whether the crypto asset is undervalued or overvalued.
BTC is trading at $63,061 at time of writing and is up nearly 6.7% in the past seven days.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxGenerated Image: Midjourney