Arbitrum [ARB] has already experienced its fair share of excitement in its brief existence. However, this time, the excitement stems from a sudden surge in its price, which has skyrocketed by more than 20% in the last 24 hours.
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Arbitrum price spikes
On 13 April, Arbitrum witnessed an unprecedented surge in its value since its launch. By the end of that trading day, the value had soared by more than 14%.
At the time of writing, the surge had continued, with an additional increase of 14%, bringing the overall rise in value to nearly 30% within the past 48 hours. The six-hour chart indicated that it was trading at approximately $1.5.
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.
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.
– How much are 1,10,100 ARBs worth today
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.