The past 9 days saw Arbitrum, ARB through a notable recovery of about 15%. But it appeared the bears are back following yesterday’s interception. The price is back under $1.8 and is now looking poise for a big sell-off.
A quick recap from the peak of $2.42 where ARB started to decline this month, it saw a twelve-day loss and pinned support above $1.54 last week.
It bounced back and almost hit the important $2 level, which was much-anticipated for as a retest point during the recovery phase. Unfortunately, the price wicked near that important level and closed yesterday’s trading with a bearish pin bar candle.
This bearish candle pattern suggested a potential drop, and as we can see, the price has rolled back under the $1.8 level today after trading above it for 48 hours. More sell-offs should be expected if supply increases.
Considering yesterday’s rejection, the recovery phase appeared to have come to an end. It is forming a classical “head and shoulder” – H&S pattern, as seen on the daily chart. Although the right shoulder of this bearish pattern is yet to be completed.
As the price dips toward the neckline, we can expect a colossal drop into the orange demand zone before deciding on the next direction.
ARB Key Level To Watch
Source: Tradingview
The crucial support for ARB right now is $1.6. A crack below this support could trigger a drop to the $1.4 level, followed by the demand zone of $1.352 and $1.25. The $1 level would be the next support to watch for more crackdowns.
Right now, the $1.82 level is acting as resistance, followed by yesterday’s rejection at $1.98. Above these levels lie $2.1 and $2.42.
Key Resistance Levels: $1.82, $2.11, $2.42
Key Support Levels: $1.6, $1.4, $1.25
- Spot Price: $1.78
- 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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