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Arbitrum (ARB) Price Faces Crucial Crossroads, Can It Reach Another All-Time High?

2 mins
Updated by Ryan Boltman
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In Brief

  • The Arbitrum (ARB) price is struggling to hold on above the support line of a long-term pattern.
  • Readings from long- and short-term time frames are conflicting.
  • A close below the channel's support line will confirm the bearish trend.
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The Arbitrum (ARB) price is at risk of breaking down from a confluence of support levels, something that could catalyze a sharp fall.

The level is created by a long-term ascending parallel channel’s support line and an important Fib level. Whether the price bounces or breaks down could determine the future trend’s direction.

Arbitrum Price At Risk of Breakdown

The long-term daily chart technical analysis provides a decisively bearish ARB price prediction. The primary cause of this is the existence of an ascending parallel channel.

The ascending parallel channel is a corrective pattern where the price fluctuates between parallel resistance and support lines before finally breaking down.

The likelihood of a breakdown increases since the price trades in the lower part of the channel.

Arbitrum (ARB) Price Channel
ARB/USDT Daily Chart. Source: TradingView

The 0.382 Fib retracement support level (white) coincides with the channel’s support line, making the $1.30 support area a possible catalyst for a downward movement.

According to the Fibonacci retracement theory, the price tends to partially retrace to a prior price level after a significant price move in one direction before resuming its original direction.

ARB Price Prediction: Can Price Salvage Rally?

While the daily time frame is bearish, the short-term four-hour one provides a bullish outlook. The price has created a double bottom, considered a bullish pattern, leading to upward movements most of the time. 

Additionally, the bullish pattern has been combined with a bullish divergence in the RSI (green line). This is a type of bullish occurrence in which a momentum decrease does not accompany a price decrease.

Therefore, it supports the bullish outlook. 

If an increase follows, the price can move to the 0.618 Fib retracement resistance level at $1.60. The level also coincides with the long-term channel’s midline. The reaction once it gets there will be crucial in determining the future trend.

Arbitrum (ARB) Price Prediction
ARB/USDT Two-Hour Chart. Source: TradingView

If the ARB price breaks out above $1.60, it could reach its all-time high at $1.80. However, a breakdown from the channel’s support line could result in a sharp decline towards $1.0, the 0.618 Fib retracement support level. 

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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