ARB surges 11%, network activity explodes – Is the $0.31 target within reach?

Arbitrum One continues to assert its position as a key Layer 2 solution in the Ethereum (ETH) ecosystem. The price of ARB has surged more than 11% in the past 24 hours, amid a broader crypto market recovery of about 7%. This strong momentum comes as Arbitrum (ARB) shows signs of forming a bottoming pattern, while on-chain activity is becoming increasingly vibrant.

Is ARB forming a bottom?

The 4-hour chart shows that ARB is forming a potential double-bottom pattern after the market’s sharp sell-off the previous day. Bullish demand quickly pushed the price to recover from the $0.19 area to $0.24. However, $0.24 now acts as the “neckline” (neckline) – a key resistance level that must be decisively broken to confirm a bullish reversal.

The initial recovery was reinforced as the momentum indicator shifted from negative territory up to 0.0292, reflecting an improvement in trend. Nevertheless, this strength remains modest compared to most altcoins on the market.

From a capital flow perspective, there are signs of capital returning, but the bulls have not truly taken control as the Chaikin Money Flow Index (CMF) remains at -0.16, indicating that selling pressure is still present.

Source: TradingViewIf ARB can decisively break above the neckline, the price is likely to target the $0.311 level in the near future. Both fundamentals and on-chain activity support this scenario, but continued strong demand for ARB is a prerequisite.

Network activity surges

Arbitrum has just marked itself as the fastest-growing EVM blockchain of the past week, with the number of active addresses surpassing 2 million—a 135% spike compared to the previous week, according to data from Nansen. However, BNB Chain still leads the market with nearly 14 million active addresses, followed by Polygon and Base, with 4.7 million and 3 million addresses, respectively.

Source: NansenArbitrum’s breakthrough is fueled not only by users but also by a significant increase in developer activity, reaching the highest level in three months. As a result, 24-hour trading volume across the entire Arbitrum One ecosystem has surged. Notably, over 900 dApps on Arbitrum—including Uniswap (UNI)—are generating up to $1.2 billion in daily trading volume.

TVL, Perps, and DEX volume

Total Value Locked (TVL) on the chain has remained stable since early December. However, recent monthly data shows TVL has increased by 7%, bringing the total to about $6.53 billion.

On another note, trading volume on the Perps market and DEXs continues to move sideways, currently reaching about $639 million and $607 million, respectively. Previously, in November, all three of these metrics saw periods of strong surges.

Source: DefiLlamaThis context has traders paying special attention to whether ARB’s price momentum and network activity can be sustained to help ARB break above the $0.24 resistance level. If buying pressure is not strong enough to surpass this threshold, ARB’s price will likely continue to fluctuate within the current accumulation zone.

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