Arbitrum [ARB] surged 12.18% in 24 hours, as growing institutional interest and expanding network revenues reinforced the rallys foundation.
Besides the rally, Standard Chartered recently initiated ARB coverage and set a $10 price target for 2030.
Reportedly, the bank cited Arbitrums enterprise-grade infrastructure as a key driver behind its longer-term price outlook.
Elsewhere, Robinhood Chain activity also strengthened the network‘s revenue profile significantly. Arbitrum’s monthly revenue run-rate surged to roughly $5 million, reflecting a fivefold increase since the July period.
The rally therefore aligned with the improving network economics rather than relying exclusively on the speculative market demand.
Additionally, ARBs 24-hour trading volume also expanded 5.25% to $561.52 million. However, the derivatives positioning suggested traders had not fully embraced the improving network fundamental backdrop.
Short sellers absorb growing pressure
Notably, the price rally increasingly challenged the bearish derivatives positions as price extended its reversal.
As per CoinGlass analytics, the short liquidations had reached $238.64K during the rally, compared to $97.75K in long liquidations.
The shorts therefore suffered nearly 2.4 times the liquidations recorded among the leveraged longs.
Importantly, the imbalance correlated with ARBs upward price move, which pressured the traders positioned against the price recovery.
The liquidation profile alone, however, did not reflect a widespread bullish derivatives conviction. The funding conditions around ARB still carried a bearish tilt, although the latest trajectory showed an important momentum shift.
Source: CoinGlassNegative funding starts climbing from lows
The ARBs OI-Weighted Funding Rate remained below the neutral threshold, though recovering from deeper negative readings.
In particular, the metric sat at around -0.0043% at the time of analysis. The funding rate had earlier fallen to the -0.0100% level, implying a considerably stronger short-side pressure.
The funding rate rebound towards the neutral zone suggested bearish positioning had reduced as ARBs price reversed.
Notably, the funding had frequently remained positive throughout the late August and early September period.
The latest negative tilt therefore implied lingering caution after the ARBs recent price volatility.
Even so, rebounding from the latest funding introduced a more constructive signal than another deterioration would have provided.
Together with the heavier short liquidations, the improvement implied that bearish traders suffered increasing pressure.
Source: CoinGlassGolden zone rebound targets $0.19 next
On the 24-hour chart, Arbitrum [ARB]s technical recovery gained momentum after the bulls defended the Fibonacci golden zone during the recent price pullback.
Notably, ARB price retreated after grabbing liquidity around the $0.2069 level before entering the retracement area.
More importantly, buyers reclaimed control around the 0.618 Fibonacci level at $0.1549, preventing a deeper price retreat towards the $0.1313 zone.
Subsequently, ARB recovered towards the $0.1714 area, placing the $0.19 resistance back within reach.
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The RSI indicator meanwhile climbed to 66.91, above its 65.47 average signal, as buying strength returned with the price recovery.
Flipping the $0.19 resistance into support would expose the $0.2069 swing high for a retest. Clearing that peak would likely strengthen the recovery structure and eventually reopen a path towards the $0.30 area.
Source: TradingViewFinal Summary
- Recovering funding and heavier short liquidations showed bearish pressure had started easing.
- ARBs golden-zone rebound could extend if buyers successfully clear the $0.19 resistance.