Here’s why Arbitrum’s Robinhood partnership could increase net traders by 120%…
NOIDA (CoinChapter.com) — Arbitrum (ARB) could be the next superhero that traders are always looking for. A key development that could attract more buyers to the Arbitrum market is the expansion platform’s recent partnership with investment giant Robinhood.
At ETHDenver, Robinhood and Arbitrum announced a partnership that will integrate Arbitrum swaps into Robinhood Wallet, giving users access to cheap and fast trading on major layer 2 networks.
The goal of this collaboration is to simplify Web3 access and drive broader adoption by reducing complexity and barriers, especially for those new to web3. Additionally, as a self-custodial solution, Robinhood Wallet supports a variety of networks, giving users complete control over their digital assets.
Additionally, this move could help boost demand for the token by allowing ARB exposure to Robinhood wallet users.
Layer 2s like Arbitrum, currently the leading chain by overall lock value, help solve this problem. (high gas prices) This is a problem for users. Accessing and trading L2 has historically been difficult for non-crypto natives, but now Robinhood Wallet helps those new to the web3 by removing the complexity.
said Johann Kerbrat, General Manager at Robinhood Crypto.
ARB forms a bullish technique
Meanwhile, ARB price action formed a bullish technical pattern called ”.Bull pennant.‘
A bull pennant is a continuation pattern that appears when an investment undergoes a price rally and then consolidates between two converging trend lines. Ultimately, after a period of consolidation, a large breakout in the direction of the initial move occurs.
However, it is important to note the volume. Likewise, volume should be low during a sideways move, but increased during a breakout move. Otherwise, it is more likely that the price will revert to a sideways pattern.
Following the rules of technical analysis, if ARB price breaks out of an uptrend, you could theoretically target a price level at least 120% higher than the current price. That means the target price is close to $4.35.
ARB Prices Consolidate Despite Robinhood Announcement
ARB prices recorded a slight gain on March 1, rising more than 2% to reach daily highs near $2.01 before paring some of the gains. The token’s failure to respond to the Robinhood partnership news could indicate the presence of bears near the supply wall around $2.144.
As buyers enter the market following the news of the Robinhood partnership, the Arbitrum token could move beyond immediate resistance and target resistance near $2.4.
Conversely, if the current rally fails, ARB price could fall to the 50-day EMA (purple wave) support near $1.83. Additionally, a violation of immediate support may require Arbitrum price to test support near $1.62 before recovering.
ARB’s Relative Strength Index remained neutral at 55 points on the daily chart.