Arbitrum’s price has reached a critical trading level again in the latest dip. But it appeared to have found a temporal support and now trades calmly. A major move at this support will determine the next direction.
After a three-week break from a low of $0.56 in July, Arbitrum retraced briefly above $0.8 but lost buzz and later initiated a fresh drop in continuation of the bearish trend starting from $2.4 in the first month.
It advanced bearish this month and the price touched $0.6 yesterday with a doji candle close, indicating an indecisiveness in the market. This led to a slight relief and trading is now looking calm, although still bearish.
But taking a critical look at the market, the recent candle pattern shows that selling volume is currently low on the daily chart, and from the look of things, the bearish party might be over soon. If the volume continues to increase, the price may break the previous low.
The overall market outlook is still highly bearish on the mid-term scale, although things are likely to change as the market appears overstretched.
An increase from the current trading level should bring positive action, but the price must break above the falling resistance line before one can start to consider a change in the trend.
ARB’s Key Level To Watch
If the price increases above this line, the potential resistance level to watch is $0.85. The psychological $1 level would be the next area of interest for buying. Above it lies the $1.175 and $1.28.
The $0.565 level is still holding as monthly support. If the price breaks lower, the $0.5 level would be the sell target to keep in mind with a potential crash to $0.4.
Key Resistance Levels: $0.85, $1, $1.175
Key Support Levels: $0.565, $0.5, $0.4
- Spot Price: $0.813
- 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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