Following serious sell-offs in the past months, Arbitrum ARB looks extremely oversold on a daily scale with no signs of recovery. However, it has found temporal support above $0.7 but is yet to signal a buy.
Three weeks ago, ARB lost the key $1 level after witnessing a lot of roller coaster for months. It advanced selling pressure in the following weeks and lost more key levels, sliding to a low of $0.73 last week.
A rejection occurred there and the price bounced slightly. While reattempting selling pressure, the bulls reacted to the price with a quick interception and it established support above the previous low.
Although, things are still looking dicey for the sellers as there is not enough supply to pull the price lower. Similarly, the buying volume level is currently low due to a drop in demand to push the price higher.
Right now, the price is at equilibrium on the daily chart. On the 4-hour chart, ARB is trying to initiate a leg up to create a higher high and a higher low formation but is finding it difficult due to a recent rejection at a close resistance – $0.86.
If the bulls manage to push above this resistance, we may see a shift in the market structure in no time. A crack below the established support should cause more meltdown capable of dipping the price to a lower price level.
ARB’s Key Level To Watch
Amid the ongoing indecisiveness, the possible resistance for an upsurge is $0.86, followed by $1. Reclaiming all these resistance levels might trigger further buying to $1.175 in no time
While it sits above the $0.73 support level, a dip below this support should cause the price to drop to $0.6. The following support to watch for an increase would be $0.5.
Key Resistance Levels: $0.86, $1, $1.175
Key Support Levels: $0.73, $0.6, $0.5
- Spot Price: $0.815
- Trend: Bearish
- Volatility: Moderate
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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