NOIDA (CoinChapter.com) — Arbitrum (ARB) could be the next breakout superhero that traders are always looking for. A key development that could attract more buyers to Arbitrum markets is the scaling platform’s recent partnership with investment giant Robinhood.
At ETHDenver, Robinhood and Arbitrum announced a partnership to integrate Arbitrum swaps in the Robinhood Wallet, offering users access to low-cost, fast transactions on a leading Layer 2 network.
The collaboration would aim to simplify Web3 access and promote wider adoption by reducing complexity and barriers, especially for those new to web3. Moreover, the Robinhood Wallet, a self-custody solution, supports various networks, allowing users full control over their digital assets.
Furthermore, the move will also grant ARB exposure to Robinhood wallet users, which could help boost demand for the token.
Layer 2s like Arbitrum, which is currently the leading chain by total-locked value, help solve this [high gas fees] problem for our users. Accessing and transacting on L2s has historically been difficult to non-crypto natives, but Robinhood Wallet now helps strip away the complexities to help onboard those new to web3
said Johann Kerbrat, General Manager of Robinhood Crypto.
ARB Forms Bullish Technicals
Meanwhile, ARB price action has formed a bullish technical pattern called the ‘Bull Pennant.‘
The bull pennant is a continuation pattern that emerges when an investment instrument consolidates between two converging trendlines after undergoing a price rally. Ultimately, a breakout in the direction of the large initial movement follows the period of consolidation.
However, it is important to note the volume. As in, volume during consolidation should be low while it must increase during the breakout move. Otherwise, prices are more likely to pull back into the consolidation pattern.
Per the rules of technical analysis, if ARB price breaks out of the bull pennant, it can theoretically target a price level at least 120% higher than its current prices, meaning a price target near $4.35.
ARB Price Consolidates Despite Robinhood Announcement
ARB price registered a minor rally on March 1, rising over 2% to reach a daily high near $2.01 before paring some of its gains. The token’s failure to respond to the news of the Robinhood partnership could indicate the presence of bears near the supply wall around $2.144.
Once buyers enter the market following the Robinhood partnership news, the Arbitrum token could break above the immediate resistance and target the resistance near $2.4.
Contrarily, if the current rally fails, ARB price could drop to the 50-day EMA (purple wave) support near $1.83. Moreover, breaching the immediate support might force Arbitrum prices to test the supprot near $1.62 before recovering.
The relative strength index for ARB remained neutral, with a score of 55 on the daily charts.