Arbitrum followed Bitcoin‘s pattern and dropped beneath an established support level. Retesting that level as resistance could fuel more negative actions if rejected in the coming hours.
Following a series of drops that brought the price to a three-week low of $1.11, ARB found base support there and started to recover slowly in the past week.
This recovery later led to a surge above the $1.25 – $1.28 support (formerly resistance) zone before soaring to a new high of $1.812, without any major pullback on the daily time frame.
ARB technically left that support level for a retest. And as we can see now, it appeared to be in play with the latest meltdowns. Though it may look sudden and heavy right now. We can expect a quick buyback as soon as it finds a solid level to bounce back.
The ongoing retracement is healthy for the market to produce a strong rally in the next leg up. And at the same time providing a discount and buying opportunities for the buyers. Where buyers are looking for entry is somewhere around the mentioned support zone or below it.
However, the price may not even reach that level before they step back. A strong rebound above last week’s surge zone could activate a potential buy for a bigger rally beyond $2. Let’s see how the price plays out in the next couple of days.
ARB’s Key Level To Watch
The price recovered briefly from the daily crash level and retested the breakdown support level of $1.58 as resistance. If the price increases further, the $1.7 would be the next buying area. Pushing through that level could bring a full recovery back to $1.82, marked as the current monthly high.
ARB may encounter support at $1.45 in a fresh drawdown. If this support fails to suppress sell actions, the $1.28 level is the major support to watch for a rebound – all marked orange on the hourly chart. The $1.2 level might also come at hand.
Key Resistance Levels: $1.7, $1.82, $2
Key Support Levels: $1.45, $1.28, $1.2
- Spot Price: $1.59
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: maximusnd/123RF // Image Effects by Colorcinch
