Arbitrum Price Searches For Support at $1, But Will ARB Find It?
Arbitrum price was unable to surpass its previous high and got rejected, sending it back to $1. This weakness could imply more downside is to come.
Key Takeaways
- Arbitrum failed to make a breakout above its descending channel.
- The ARB price is retesting $1 but is unlikely to hold.
- The next lower low could be below $0.90.
The price of Artbitrum’s token ARB fell to a low of $0.90 on April 13, falling 60% its all-time high of $2.20 on March 9.After closing the day above $1 on April 13, it recovered and reached a high of $1.22 on April 22.
However, another downturn followed, with the price back at $1. This could imply sellers are putting pressure on the area, posing the question of whether or not it can hold.
ARB Price Analysis
After establishing a bottom at $0.75 in September and October last year,Arbitrum started its first major uptrend, leading to an all-time high near $12 on January 11. After a period of stabilization and an attempt to continue the upward trajectory which failed on March 9, we saw a downturn.
ARB moved within a descending channel, falling to its low of $0.90 on April 13. As the daily chart shows, RSI signaled oversold conditions. Therefore, a recovery was expected, but it appears it was only short-lived. A rejection close to the descending resistance occurred pushing the price downward again.
MACD also flashed a bullish signal on April 13 but is now starting to present a bearish one. Meanwhile, the moving averages look like they are about to form a death cross.
Can Arbitrum Maintain Above $1?
Zooming into the hourly chart and looking at the wave structure inside the descending channel, we can see that the rise from April 13 is more likely corrective in nature. Since March 9 we have likely seen a five-wave impulse to the downside. If this is the case, then the rise from April 13 is the fourth wave.
There is a similarity with the consolidation of March 19 to 26’s structure, which could be interpreted as a fractal. This is confirmed with the price unable to surpass the April 15 high on April 22.
We can expect another lower low compared to April 13 or, at least, ARB revisiting the area before this downtrend ends. This means $1 is unlikely to hold at this point. Arbitrum could fall back to below $0.90 before the start of a new bull phase.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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