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Will Arbitrum (ARB) Reach New All-Time High After 60% Increase in December?

2 mins
Updated by Ryan James
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In Brief

  • The Arbitrum (ARB) price broke out from the $1.30 horizontal resistance area and validated it as support on December 26.
  • The daily time frame Relative Strength Index (RSI), price action and Elliott Wave count all support the ongoing increase.
  • Despite the bullish ARB price prediction, a breakdown from the parabolic ascending support line will invalidate the trend.
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The Arbitrum (ARB) price has increased swiftly since December 26 and is approaching its all-time high.

ARB broke out from a horizontal resistance area and faces only one more resistance on the way to its all-time high.

Arbitrum Breaks Out From Resistance

The ARB price has increased since falling to a low of $0.74 on September 11. The price created a higher low on October 19 and accelerated its rate of increase afterward.

The price broke out from a descending resistance trend line on October 23. Before the breakout, the trend line had been in place for 192 days.

Initially, ARB struggled with a pivotal horizontal resistance area but finally broke out in December, validating it as support on December 26 (green icon) and creating a long lower wick.

ARB is approaching its all-time high resistance of $1.82.

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

Cryptocurrency analysts and traders have a positive outlook for the future ARB trend. Route 2 FI believes a rotation toward the Ethereum (ETH) ecosystem is underway. He tweeted:

Interesting to see $SOL, $INJ, $SEI, $TIA, and $AVAX taking a break here. Seems like Ethereum and $ETH betas are the future of France again. $ETH betas: $ARB, $OP, $LDO, $MATIC.

Both Shardi B and CryptoKnight are bullish because of the price action. Due to the lack of overhead resistance, they suggest the rally can become parabolic once the price breaks its all-time high.

ARB Price Prediction: Will Parabolic Rally Continue?

A closer look at the daily time frame shows that the price action and Elliott Wave readings are bullish.

The wave count indicates that the ARB price is in the third wave of a five-wave upward movement. The sub-wave count is in white, showing an extended third wave, creating a parabolic movement.

Due to the length of the first sub-wave, wave three may extend to 2.61 times the length of wave one. This ARB upward movement of 40% would lead to a high of $2.25.

The daily Relative Strength Index (RSI) also supports this possibility since it broke out from its bearish divergence trend line (green) and is increasing.

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

Despite this bullish ARB price prediction, a breakdown from the parabola will invalidate the wave count. ARB could then fall by 30% to the closest support at $1.10.

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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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