Arbitrum price has formed a highly bullish chart pattern ahead of its monthly tokens later this week

Arbitrum price has formed a highly bullish chart pattern ahead of its monthly tokens later this week. The ARB token was trading at $0.3105 on Sunday

The Arbitrum price has formed a highly bullish chart pattern ahead of its monthly tokens later this week. The ARB token was trading at $0.3105 on Sunday, down by over 75% from its highest point in December.

Arbitrum price is lagging behind

The token is hovering near its all-time low, making it one of the worst-performing cryptocurrencies. Arbitrum is the second-biggest layer-2 network in the industry, after Base. It’s a preferred option among developers interested in Ethereum’s security while cutting their transaction costs.

Arbitrum will be in the news this week for three main reasons. First, third-party data shows that its cumulative DEX volume has now topped $352 billion. With the network handling almost $5 billion a month, it means that it may hit the $500 billion milestone this week.

This growth has been aided by Uniswap, the largest DEX network on its platform, which crossed a $300 billion cumulative volume. The other top DEX networks on Arbitrum include Fluid, PancakeSwap, and Camelot.

Second, Arbitrum will have a giant token unlock of 93.2 million worth $28.9 million on April 16. Its large monthly unlock, and those that happen daily, will continue until 2028 when all the 10 billion ones are unlocked.

Token unlocks are usually seen as being highly inflationary as they increase the number of tokens in circulation, diluting existing investors.

Arbitrum Price Forms a Falling Wedge

The third reason why the Arbitrum price will be in the spotlight is that it has formed a falling wedge pattern. This pattern is made up of two falling and converging trendlines. In this case, the upper side of the wedge connects the highest points since December 12th. The lower side of the wedge connects the lowest swings since January.

This pattern’s convergence may soon result in a bullish breakout. At the same time, the Relative Strength Index (RSI) is heading upwards and getting closer to the neutral point at 50. Also, the Awesome Oscillator has formed a bullish divergence pattern.

Therefore, the coin will have a strong bullish breakout, with the next key target to watch being at $0.8210, the highest swing in July last year. Such a move would be a 165% surge from the current level.