Arbitrum (ARB) broke above a strong resistance zone after the total tokenized value of assets on its platform hit $10 million. However, there still hangs a question whether ARB will be able to hold above this level.
The tokenized assets on Arbitrum, a layer 2 on Ethereum, hit 800, and the value of these assets reached nearly $10 million. A crypto market analyst spotted this shift on traditional equities onto ARB rails and named it “leading home” for on-chain markets and real-world assets.
Over the last 3 weeks, the total value of the assets tokenized on the ARB chain rose from $1.3 million to $1.5 million. During the past 30 days, the RWA holders rose by more than 5% to 3,595, while the stablecoin holders rose to 7.6 million.
By asset classes, Arbitrum holds more than 8 billion worth of stablecoins, $345 million worth of private equities, $220 million of non-US government debt, and $2.4 million in public equity.
ARB breaks above 50-day MA
Since the latter end of October, the token prices have been below the 50-day Moving Average (MA). ARB was rejected multiple times when it approached the 50-day MA. The circles in the chart below show the rejection, while the rectangle highlights all the times that the token broke above the 50-day MA but failed to sustain.
ARB has crossed above the 50-day MA ($0.217) once again and is using it as a support level. Just like at other times, the token has established its uptrend. But will it be able to hold? According to crypto netizen Michael van de Poppe, ARB will not just hold but will spike as it is undervalued.
On the technical front, the Relative Strength Index indicator is rising along with the rising prices, which shows that there is no divergence, and the prices may continue to rise. But the main thing to note is, the current uptrend is much longer than the previous uptrend. This shows that the market is set up for a big move. Provided that the bulls keep the pressure, the next resistance level would be $0.24 before it hits the 200-day MA at $0.26.
