ARB Price Eyes Rebound as Arbitrum DAO Approves Staking Proposal

ARB Price Eyes Rebound as Arbitrum DAO Approves Staking Proposal

After a downward trend that began following the March mini-bull run, ARB’s price has been on a steady decline. However, with the Arbitrum DAO’s recent approval of a staking proposal, the token appears poised for a bullish breakout that could lead to gains exceeding 50% in the near term. During the New York trading session, ARB was trading around $0.546, marking a 1.4% decrease over the last 24 hours.

Staking Proposal Spurs ARB Price Revival

The Arbitrum DAO has given the green light to a proposal allowing ARB staking on the Layer 2 network. The proposal, introduced by Frission, an Arbitrum delegate, on June 24, came in response to concerns about the ARB token’s inability to accrue value and its underutilization as a governance token.

The proposal was met with overwhelming support, garnering 91% approval from over 25,000 voters.

According to Frission, the next step following this approval will be an on-chain proposal on Tally, seeking $200,000 in funding to cover development costs. Should this proposal pass, work on the staking platform is expected to commence in August.

ARB Price Poised for Reversal

ARB’s price chart indicates a prolonged downtrend, though it is currently trading within a falling wedge, a pattern often associated with bullish reversals. The market seems yet to fully absorb the news of the DAO’s staking proposal.

The ARB price is currently below the 21 and 50 exponential moving averages, which act as resistance levels, further restricting upward movement.

Since August 8, ARB has been gradually moving higher, forming higher highs despite the broader market downturn. If this trend continues, ARB could break out of the falling wedge, potentially surging 51.48% to reach the immediate resistance level around $0.8124.

Data from Coinglass reveals that over $1.276 million in buy limit orders between $0.52 and $0.53 remain unfilled. This buy wall could provide crucial support for the ARB price, but if it fails, ARB might drop to $0.49, a level that has recently acted as support and could do so again if tested.

Technical indicators, including the Relative Strength Index (RSI) and Bollinger Bands, suggest that ARB is currently oversold, hinting at the possibility of a short-term bounce.

While ARB remains in a strong downtrend with the potential for further losses, the proximity to support levels and the oversold RSI could present a short-term buying opportunity, potentially leading to a 50% breakout.