Two weeks ago, Arbitrum ARB climbed back above a key psychological level after dipping near the bottom during the last correction. It is currently in the middle of consolidation, gathering volatility for the next major move.
Looking back from where the price started to drop in January, ARB went through a reset as it plummeted through the orange demand zone to test the $0.86 level – located near the bottom. That level was sharply rejected and the asset quickly climbed back above the psychological $1 level.
This led to suspense in selling as the buyers showed strong interest in the market. Their interest faded quickly after failing to reclaim the recently lost demand zone and as a result, the market entered a brief consolidation phase. They are now struggling to get out of the phase.
On the other hand, the bears are also trying to resume pressure. A drop below the main bottom could trigger a catastrophic loss in the mid-term. But from the look of things, the bears appeared to have exhausted momentum daily.
Compared to some top altcoins, which have seen a notable recovery in the past week, ARB is still finding it difficult to regain strength as it trades at around $1.2 at the time of writing. We can expect a surge in volatility anytime soon.
ARB’s Key Level To Watch
Considering an upsurge, which is most likely to come into play shortly, the key obstacle area for buying would be the $1.25 and $1.35 resistance levels – formerly a demand zone. A significant increase above this zone could allow more surge to $1.6 and perhaps $1.8.
While the $1 level provides support, a drop below it could bring the price back to $0.86, followed by the $0.8 support – the main bottom.
Key Resistance Levels: $1.25, $1.35, $1.6
Key Support Levels: $1, $0.86, $0.8
- Spot Price: $1.18
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/arbitrum-price-analysis-prediction-april-23-arb-faces-crucial-supply-zone-following-a-short-bounce-can-it-overcome/