Arkham (ARKM) Spikes 75% Today Signaling Potential Upturn

Key Takeaways

• Major support tested near $0.497, showing initial recovery signs.
• Breakout attempt forming, targeting descending resistance.
• Wave structure suggests a potential five-wave impulsive move.
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ARKM has been in a prolonged corrective phase following its parabolic rise, with price action currently testing a key support zone.

Bullish divergences and a wave-based recovery attempt suggest a potential reversal structure is forming. 

ARKM Price Analysis

The daily chart of ARKM shows an extended correction following its five-wave impulsive run, during which the price peaked at $4.00 on Mar. 9, 2024.

After completing a full Elliott Wave cycle, ARKM entered a prolonged downtrend, with lower highs and lower lows forming a descending structure.

Recently, the price tested a long-standing support zone between $0.497 and $0.279. Historically, This area has served as a key accumulation zone, and the price shows early signs of a potential bottom formation.

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The daily Relative Strength Index (RSI) also hovers near oversold territory, indicating that selling pressure may be exhausted. The presence of a descending trendline resistance suggests that a breakout could trigger a new bullish phase. 

If ARKM reclaims the 0.786 Fibonacci retracement level at $1.063, this would confirm a trend reversal and shift the broader market sentiment in favor of buyers.

The overall structure suggests that the corrective phase could be near completion. A confirmed breakout above the descending resistance would be a strong signal that a new impulsive wave is starting.

However, failure to hold above $0.497 could lead to a deeper retest of the critical $0.279 support zone.

ARKM Price Prediction 

The 1-hour chart provides a closer look at the early stages of a potential new bullish wave. After testing the green support zone near $0.497, ARKM saw a sharp recovery, rallying above $0.70 in what appears to be the first impulsive move (wave i). 

However, the price quickly retraced, signaling a potential wave (ii) pullback before the next leg up.

The projected Elliott Wave count suggests that if this starts a five-wave sequence, wave (iii) could extend toward the next key resistance level at $1.00.

The first upside target is around $0.75, where the descending trendline resistance meets the prior breakdown zone. 

If momentum sustains, wave (v) could push prices above $1.00, aligning with the 0.786 Fibonacci retracement level at $1.063.

A key invalidation point for this bullish setup would be a break below $0.497, which could result in further downside toward the $0.279 region.

However, as long as ARKM holds this support, the wave structure remains valid, and buyers will likely step in at pullbacks.

The RSI on the lower time frame has reset after the initial rally, suggesting a higher second leg is possible.

If wave (iii) begins soon, momentum should increase, confirming the start of a larger trend reversal.

Key Levels to Watch

• Immediate Support: $0.497 (historical support zone).
• Critical Support: $0.279 (1.0 Fibonacci retracement).
• Immediate Resistance: $0.75 (descending trendline).
• Major Resistance: $1.063 (0.786 Fibonacci retracement).
• Short-Term Target for Wave (v): Above $1.00 if momentum sustains.
• Invalidation Zone: Below $0.497, signaling further downside risks.