Arbitrum (ARB) Bounces from Support: Will It Reach $0.670 or Fall Back?
- Arbitrum (ARB) bounces from support, forming a descending channel with potential for breakout and price increase.
- Breaking the upper boundary of ARBs descending channel could push the price to key resistance levels of $0.380$0.670.
- RSI at 45 signals neutral market conditions, but upward momentum could push ARB into bullish territory for a breakout.
Arbitrum (ARB) is trading within the descending channel on a daily timeframe, and the recent bounces from the support level have attracted the attention of the crypto community. If it is able to break above the upper boundary of the market, which is currently resistant, it can cause the ARBs price to climb to higher levels. This formation attracts the attention of traders in anticipation of the direction of the increase.
Bullish Potential for Arbitrum
An ascending channel, on the other hand, represents a consistent price level that moves within a channel that slopes upwards. On the chart, Arbitrum recently reached the lower boundary, and it demonstrated that it has support there. This bounce is crucial, as it signifies the start of the recovery, especially if the price crosses the upper line of the channel. If this occurs, Arbitrum may aim at the reversals at $0.380, $0.470, $0.565, and $0.670, which are significant price levels that can spur more buying impulse.
The chart also features an illustrated volume profile, highlighting key areas of resistance and support. These levels are important for determining where Arbitrum might experience some movements in its price. Thus, it is crucial for the bulls to overcome and maintain the price above the resistance zone formed by the channels upper trendline.
ARBs Next Move
Moreover, the Relative Strength Index (RSI), situated at the bottom of the graph, indicates that the market is currently at the center range. RSI is currently at 45, which indicates that the stock is not considered to be excessively overbought or oversold. Nevertheless, if the momentum moves upwards and exceeds the upper boundary once again, it moves the RSI into the bullish territory that might indicate a breakout.
If ARB manages to penetrate the upper border of the descending channel. In that case, it shall push the price towards the previously characteristic levels of resistance and, possibly, even higher. The price chart indicates that there is great potential for the token to rise higher, on the condition that the token will be able to sustain above the support area. As of now, ARB is trading at $0.2910, showing a 3.38% increase over the past day.
However, the chart also shows the likely possibility of further decline in case the price does not cross the said resistance line and is rather being turned away at the top end of the channel. If this happens, ARB may remain trading below the channel, continuing its bearish trend further. Traders should pay close attention to the price levels of ARB and its technical analysis to determine if a breakout or consolidation is imminent.
Read more: https://www.tronweekly.com/arbitrum-arb-bounces-from-support-will-it-reach/
Text source: TronWeekly
