While most altcoins saw a major recovery since the monthly crash, ARB’s price remained relatively calm due to low volatility. It has initiated a drop again and is now losing momentum as the market bleeds.
ARB appears back on a selling mode after initiating a false break above a five-month resistance line last week. The selling pressure is currently low but we can expect significant moves if the volume level increases.
However, looking at the setups, the price seems to be reaching an oversold condition on the daily timeframe. As we can see, the candle formation has been getting smaller for some weeks, indicating an exhaustion in the bearish trend.
If this pattern continues to play, ARB is expected to bottom out soon with a potential bullish reverse pattern. Unfortunately, the bulls are off the market with no signs of interest at the time of writing.
On the other hand, if these setups turn out to be another distribution phase for this pair, we may see a big collapse into the $0.2 – $0.1 zone while the supply level continues to increase.
Whichever way it goes, it is important to note that the bearish trend will likely end anytime soon. A bullish reversal pattern can be expected from a technical standpoint.
ARB’s Key Level To Watch
The $0.429 level is currently the key support to watch for a potential breakdown. A new low may surface around the $0.3 and $0.1 levels.
In case of a reversal, the first resistance to consider for an increase is $0.636, located slightly above the resistance line. Overcoming this resistance could activate a quick buy to the $0.84 resistance before rising to the key psychological $1 level.
Key Resistance Levels: $0.636, $0.84, $1
Key Support Levels: $0.429, $0.3, $0.1
- Spot Price: $0.529
- Trend: Bearish
- Volatility: Moderate
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-august-29-supply-turns-low-as-arb-reaches-oversold-possible-reversal/