ARB price prediction: How Robinhood Chain growth is boosting Arbitrum

Arbitrum price has made a strong bullish breakout, reaching its highest level since January this year. ARB jumped to $0.1950, up by 175% from its lowest level this year, making it one of the best-performing tokens in the crypto industry. This surge has happened amid the ongoing Robinhood Chain growth.

Arbitrum Price Jumps as Robinhood Chain momentum continues

ARB price has done well in the past few days, helped by Arbitrum’s relationship with Robinhood, the giant American fintech company. Robinhood Chain is built on top of Arbitrum Orbit framework. As part of its arrangement, chains built on Arbitrum’s stack pay a 10% fee on their net chain profit back to the Arbitrum ecosystem.

Data shows that Robinhood Chain’s fees have gone parabolic. It has already made over $21 million fees this month so far after generating $6.65 million in August. It made $3.5 million in July when it was launched. This surge is because of the growing role in the decentralized finance and real-world asset (RWA) tokenization industry.

These numbers mean that Robinhood Chain will likely continue thriving in the future, a move that may see it challenge Base, the layer-2 network that Coinbase owns. This growth will translate to more activity on Arbitrum. Indeed, data shows that Arbitrum Foundation has made over $2.1 million this month, much higher than the $710k it made last month. 

Meanwhile, data shows that Arbitrum’s role in the real-world asset (RWA) tokenization industry is improving. The network's total value locked (TVL) in the RWA industry crossed the $1 billion milestone, with the number of accounts rising to 9,600. This is important because RWA is one of the biggest use cases for the blockchain industry.

The ongoing ARB token surge is happening in a high-volume environment. Its 24-hour volume jumped to over $982 million, much higher than other tokens. This surge is happening as the Altcoin Season Index continues rising, and the Fear and Greed Index moves to 75. 

ARB Price Technical Analysis

Arbitrum price chart | Source: TradingView

Technicals also explain why the ARB token price is doing well. The daily chart shows that this rebound happened after it remained inside a narrow range for months. It stayed between the support level of $0.07080 and the resistance level of $0.1017. In most cases, this consolidation is usually a sign that investors are accumulating the token. 

The coin has now jumped above the 50-day moving average, while the Relative Strength Index (RSI) has soared to the overbought level of 85. These indicators suggest that the momentum is continuing. 

The risk, however, is that the coin has become highly overbought, which may lead to some profit-taking. If this happens, the coin may retreat and retest the key support level of $0.1491, its highest point on May 9.