Arbitrum resumed bearish impulse this month after experiencing a three-week retracement from its recent yearly lows. It has registered a staggering 14% loss since it rejected $1. More breakdown is imminent.
Looking back from where the price started to fall at $1.8, ARB has lost more than half of its value in the last six months. More losses are expected as long the bears continue to gain control.
Meanwhile, the bearish action was briefly suspended after dipping to the low of $0.74 last month. It bounced off that low and increased throughout the month near the psychological $1 level that flipped in August.
It rejected the psychological level, initiated a fresh drop and started to decline earlier this month. Yesterday, the price fell slightly below $0.79 but has recovered a bit to $0.82 at the time of writing. Last month’s low would be the next area of interest for the bears as soon as they resume pressure.
As shown on the daily chart, ARB’s lower lows and lower highs pattern has been respecting a descending wedge since it started to form in April. From a technical standpoint, the key price level to watch for this leg down is $0.6 – which is located at the lower boundary of the wedge.
There are no signs of buying at the moment. We can see that the daily volume indicator has continued to flat by the day. This reveals a steady volume outflow over the past months. More bleeding should be expected if supply keeps increasing.
As the bears target the $0.74 support level in the next dip, a breakdown from there could slip the price to the low of $0.7, $0.65 and $0.6 as mentioned earlier.
ARB has mounted resistance at the $0.91 and $0.99 levels. If those levels flip as a result of buying, $1.1, $1.2 and $1.35 are resistance levels to watch on the hourly.
Key Resistance Levels: $0.91, $0.99, $0.11
Key Support Levels: $0.74, $0.7, $0.6
- Spot Price: $0.82
- 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.