ARB appeared to have found support with the latest positive actions across the market. Although, it remains bearish weekly as it may dip lower in the coming week. Otherwise, more recoveries are expected.
As expected in the past months, Arbitrum’s price corrected deeper for three weeks and traded as low as $1.4 this week. Fortunately for the bulls, that low held well and they pushed the price to where it’s changing hands at around $1.5 at press time.
However, the trend is currently favouring the bears as there’s still room for drops from the short-term perspective. One more drawdown could slip the price into the orange demand zone, marked between the $1.35 – $1.25 price levels.
Technically, the long-anticipated retest of the late 2023 breakout (that led the bulls into the market) around this zone is confirmed by the recent monthly drop.
And as seen in the chart below, the buyers have reacted above that zone with a bounce. Although the market can still make a little twerk to the downside before finally moving up. That could create a proper bullish pattern in the form of a double-bottom or an inverse head and shoulder in the zone.
Breaking below this demand zone could cause a big collapse in the market. On the other hand, a steady swing high from the current trading level should bring the bulls back on track speedily before rallying hard.
ARB’s Key Level To Watch
Currently, the price is facing the $1.6 resistance level. Above this level lies the $1.8 and the key $2 level that cracked down in March.
If the price drops below the demand zone, there’s a minor support at $1.13 before sliding to the main support level of $1, followed by $0.9 and $0.8.
Key Resistance Levels: $1.6, $1.8, $2
Key Support Levels: $1.4, $1.25, $1.13
- Spot Price: $1.5
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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