Arbitrum 30% surge could have a Binance connection

Arbitrum [ARB] has been a platform of many thrills since its inception. However, the current buzz is not caused by any new feature or development. Rather, it is a sudden and dramatic increase in its price that has skyrocketed by more than 20% within the last 24 hours.

Arbitrum’s price surges

This unexpected surge in value took place on April 13th, and it quickly gained attention from traders and investors alike. By the end of that day, the value had soared by more than 14%, catching many off guard.

The bullish momentum continued over the next 24 hours, resulting in an additional increase of 14%. The overall surge in value reached nearly 30% within a mere 48 hours, leaving many in awe. The six-hour chart showed that the trading price was hovering around $1.5, leaving many speculating on what could be driving this sudden surge.

Additionally, ARB had surged into the overbought territory on a lower timeframe, as indicated by the Relative Strength Index (RSI). Not only had it crossed the 75 mark, but it had also surpassed 80.

The RSI line’s position on the lower timeframe indicated a strong bull run. However, it had yet to enter the overbought zone on the daily timeframe, although it was quickly approaching the same.

A possible reason for the surge

Crypto exchange Binance announced the introduction of new trading pairs on 13 April. One of the pairs mentioned was the ARB/RUB trading pair. This addition meant Arbitrum could now be directly traded with the Russian Rubles.

Before this announcement, ARB was already paired with the Euro and Turkish Lira, as well as other crypto assets such as Bitcoin [BTC], Tether [USDT], and True USD [TUSD].

It may be a coincidence, but the announcement of the new trading pair by Binance coincided with the surge in Arbitrum’s value. Introducing the new pairing likely generated excitement among traders as trading one of the most highly sought-after L2 tokens became more convenient.

“The introduction of new trading pairs, such as the ARB/RUB trading pair by crypto exchange Binance, may have contributed to the surge in value. Additionally, Santiment’s volume metric revealed a corresponding spike, with Arbitrum’s volume surpassing 2 billion, almost double what was recorded the previous day. Furthermore, the Total Value Locked (TVL) had experienced a slight increase, reflecting a nearly 4% surge within the past 24 hours.” Scott Tripp, President of Redecentralise, Canada said.

Anndy Lian, an intergovernmental blockchain expert, added: “Arbitrum [ARB] has been the talk of the town lately, thanks to its sudden and dramatic increase in price. This surge is likely due to a combination of factors, including the introduction of new trading pairs and the positive sentiment surrounding the L2 scaling solution. Nonetheless, investors must exercise caution, as the token approaches the overbought zone on the daily timeframe. This indicates that a correction may be imminent, and a sudden drop in price could catch many off guard.”

Convergence in Arbitrum volume?

In addition to the surge in price, Santiment’s volume metric revealed a corresponding spike. As of this writing, Arbitrum’s volume had surpassed 2 billion, almost double what was recorded the previous day.

Furthermore, the volume had steadily increased before the spikes on 13 and 14 April. The convergence of the volume and price movement further pointed towards a robust and healthy price move for ARB.

TVL responds positively to ARB spike

Following a significant decline in Total Value Locked (TVL) in March, Arbitrum’s TVL has been on the rise. According to the DefiLlama chart, the TVL had experienced a slight increase. As of this writing, the TVL stood at $2.32 million, reflecting a nearly 4% surge within the past 24 hours.

Although the recent pairing with the Russian Ruble might not be the only factor contributing to Arbitrum’s current surge, it has undoubtedly played a role. Moreover, given the current price trajectory, further increases may be observed until it reaches the overbought zone in the longer timeframe.

However, a correction may be imminent once it enters the overbought region on the daily timeframe.