Following a quick bounce from a two-month low, ARB climbed above a key psychological level and later lost momentum due to a rejection. It quickly turned weak again and now trades back near its recent low.
Arbitrum went through a lot of reductions in the last two months, losing more than 60% of its value to where it is changing hands under the psychological $1 level.
This psychological level, which is now considered a key resistance for a reversal, has become a tough hurdle for the bulls to surpass amid recent gains.
Though the bulls have reacted to the latest surge but is not strong enough to bring them back in action as the crypto is yet to find a solid ground level for a rebound. More dips might come into play if the bulls fail to show strong commitment.
Currently, the market is standing at a weekly low of $0.93. If this low holds firmly as support, we can expect more positive actions in the upcoming days. Otherwise, negative sentiments will continue to drive the price lower.
For now, ARB is still considered weak as it enters an extremely oversold region on the daily chart. Climbing back above the crucial psychological level could set a new bullish tone for the asset from a long-term perspective.
ARB’s Key Level To Watch
Retaking $1 is important for an upward movement. If that occurs, the next area of interest for the bulls would be $1.25, followed by $1.4. Higher resistance levels to consider for an increase are $1.6 and $1.8.
In case of more dips, the key support level to consider for the test is $0.86. Losing it could result in a catastrophic drop to $0.8 and potentially $0.7.
Key Resistance Levels: $1.25, $1.4, $1.6
Key Support Levels: $0.86, $0.8, $0.7
- Spot Price: $0.965
- 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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