ARB price to $2? Ethereum L2 rival Arbitrum will double in April, fractal suggests

The terms of Arbitrum (ARB) has dropped by astir 20% a week aft establishing its grounds precocious astatine $1.60 connected March 23. However, the Ethereum layer-2 token looks acceptable to resume its uptrend successful the coming weeks.

Polygon terms fractal

The cues for a bullish Arbitrum token could beryllium traced backmost to its Ethereum L2 rival Polygon's marketplace debut.

MATIC started trading connected Binance connected April 26, 2019, astatine $0.0026 per token. MATIC/USD rallied astir 300% to scope $0.0105 connected the aforesaid time earlier wiping retired 70% of those gains successful a marketplace correction by May 9, 2019.

It regained its upside momentum afterward, rallying by astir 1,350% to $0.045 connected May 21, 2019.  

MATIC/USDT four-hour terms chart. Source: TradingView/Mac

The terms trajectory reflects a recurring improvement involving the motorboat of integer tokens with seemingly beardown cardinal backing, according to independent marketplace expert Mac.

For instance, Solana (SOL), a layer-1 blockchain, rallied 50,000% earlier undergoing a akin pump, correction, and sideways consolidation signifier aft its speech debut successful April 2020. 

SOL/USD regular terms chart. Source: TradingView/Mac

Arbitrum terms could deed $2 by April

From a cardinal perspective, Arbitrum has emerged arsenic a beardown contender successful the Ethereum L2 abstraction successful caller months, with respective starring DeFi protocols, including GMX, Uniswap, Sushi, and Aave, among its users.

"GMX and Radiant connected Arbitrum are 2 of the fastest-growing protocols successful presumption of some fundamentals and terms appreciation this year," noted Dustin Teander, a researcher astatine analytics steadfast Messari, adding:"

"Looking astatine idiosyncratic retention metrics, it’s evident these protocols person gained above-market traction compared to imported protocols similar Uniswap oregon Aave."

Optimism vs. Arbitrum monthly idiosyncratic retention rates. Source: Messari

As of March 29, the full worth locked (TVL) crossed Arbitrum pools roseate to $2.2 cardinal versus astir $981 cardinal 3 months ago, according to information assets Defi Llama.

Related: Arbitrum airdrop sells disconnected astatine listing, but traders stay bullish connected ARB

Mac noted that Arbitrum's beardown fundamentals could bounds ARB's downside prospects and punctual traders to re-accumulate the token successful the coming weeks.

ARB/USDT hourly terms chart. Source: TradingView/Mac

That whitethorn pb to different terms run-up, eyeing $2 by April 2023. arsenic illustrated below.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.