Will Arbitrum (ARB) Reach New All-Time High After 60% Increase in December?

The Arbitrum ($ARB) price has increased swiftly since December 26 and is approaching its all-time high.

$ARB broke out from a horizontal resistance area and faces only one more resistance on the way to its all-time high.

Arbitrum Breaks Out From Resistance

The $ARB price has increased since falling to a low of $0.74 on September 11. The price created a higher low on October 19 and accelerated its rate of increase afterward.

The price broke out from a descending resistance trend line on October 23. Before the breakout, the trend line had been in place for 192 days.

Initially, $ARB struggled with a pivotal horizontal resistance area but finally broke out in December, validating it as support on December 26 (green icon) and creating a long lower wick.

$ARB is approaching its all-time high resistance of $1.82.

$ARB/$USDT Daily Chart. Source: TradingView

Cryptocurrency analysts and traders have a positive outlook for the future $ARB trend. Route 2 FI believes a rotation toward the Ethereum ($ETH) ecosystem is underway. He tweeted:

Interesting to see $SOL, $INJ, $SEI, $TIA, and $AVAX taking a break here. Seems like Ethereum and $ETH betas are the future of France again. $ETH betas: $ARB, $OP, $LDO, $MATIC.

Both Shardi B and CryptoKnight are bullish because of the price action. Due to the lack of overhead resistance, they suggest the rally can become parabolic once the price breaks its all-time high.

$ARB Price Prediction: Will Parabolic Rally Continue?

A closer look at the daily time frame shows that the price action and Elliott Wave readings are bullish.

The wave count indicates that the $ARB price is in the third wave of a five-wave upward movement. The sub-wave count is in white, showing an extended third wave, creating a parabolic movement.

Due to the length of the first sub-wave, wave three may extend to 2.61 times the length of wave one. This $ARB upward movement of 40% would lead to a high of $2.25.

The daily Relative Strength Index (RSI) also supports this possibility since it broke out from its bearish divergence trend line (green) and is increasing.

$ARB/$USDT Daily Chart. Source: TradingView

Despite this bullish $ARB price prediction, a breakdown from the parabola will invalidate the wave count. $ARB could then fall by 30% to the closest support at $1.10.

For BeInCrypto‘s latest crypto market analysis, click here