Arbitrum has shown a sign of strength in the last 24 hours, but the price still looks bearish from a short-term perspective. Though, it is currently consolidating above a key support level.
Since the price dropped to a key psychological level of $1 in May, ARB took a breath and subjected price actions to a sideway trend. The drop in volatility affected the sellers so much that they fail to resume pressure. The buyers also fail to push above the $1.28 resistance level.
Despite that, it has managed to hold the mentioned psychological level as support for close to a month now. Last week saw the price through a small gain before it later retraced back.
Yesterday, the price picked up again at $1.14 following a daily 2% gain. The buyers reiterated actions today but they failed to sustain momentum above the mentioned resistance level.
While the $1 and $1.281 price levels continue to serve as a tight trading zone for the past weeks, a successful break from the zone would dictate the next direction of the market.
Regardless of the current setup, ARB remains in a bearish zone on the daily chart. Selling might resume any time soon if the buyers fail to show a strong commitment to price.
ARB’s Key Level To Watch
Considering a price break from the tight trading zone, the potential support and resistance levels to keep in mind are as follows:
For a breakdown, the immediate support level to consider below $1.14 is $1.06. The major support to watch is $1 before slipping to $0.9.
If a breakup occurs above $1.281, the key buying target would be the $1.37 resistance level. After that, the $1.425 and $1.5 levels are the next resistance to keep in mind.
Key Resistance Levels: $1.281, $1.37, $1.425
Key Support Levels: $1.14, $1.06, $1
- Spot Price: $1.21
- Trend: Neutral-Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.