As Arbitrum continues to see more volume inflow, the price increased and breached a descending wedge yesterday. It now trades near a key resistance level after posting 26% gains in a week. A breakout lies ahead.
ARB has been on a steady rise for exactly seven days now as a result of the latest increase across the crypto space. This came after reestablishing support above the $0.74 level in the past week.
Yesterday, it flipped through a six-month descending wedge to reach a daily high of $0.98. It has retraced briefly and currently trades at around $0.95. Despite that, the price still looks strong on the daily chart.
While buying pressure appears to have slowed down a bit, the key target resistance level for the buyers lies at $0.99. A successful climb above that level could lead to a breakout of structure for a short-term rally.
Looking at the daily candle formation for the past week, the trading volume appears moderate compared to what some major altcoins have experienced within those trading periods.
However, it is important to note that such candle formation is mostly followed by a big price movement, which could bring a full recovery back to where it initiated drops in July. Failure to overcome this resistance may result in a pullback to the wedge for support before resurging.
ARB’s Key Level To Watch
As ARB continues to gather liquidity, the target resistance levels to watch for a short-term rally are $1.1 and $1.25 after surpassing the important $0.99 resistance level.
In case of a pullback, the main support level to consider for a drop is $0.85. A dip below that support could slip the price back to last week’s low of $0.766. The $0.74 level would be the last defence line for the bulls if the price further drops.
Key Resistance Levels: $0.99, $1.1, $1.25
Key Support Levels: $0.85, $0.766, $0.70
- Spot Price: $0.95
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.