Arbitrum entered a consolidation phase after suffering a heavy hit in the hands of the bear. The drop heatmap is estimated at 26%, making it the top-loser of the market over the past seven days.
A few days ago, ARB was consolidating around the $1.45 level after initiating a heavy short at $1.82 in the past week. The former price level is now serving as resistance.
It later extended bearishness and broke down to a new weekly low. The asset has entered another consolidation phase while the bears take a break. This phase may not hold for long due to the past hours of bearish sentiments.
Though ARB is still trading above the $1.3 level and at the same time facing a vital demand zone of $1.28 and $1.25, as shown in the 4-hour chart below. The price may hold for a while before slipping further. But if that zone holds well, the price could rebound to the previous breakdown level.
There’s still room for selling up to the $1.11 level, marked as one month low. However, if ARB extends the drawdown below the mentioned level, we should expect a massive sell-off with no major levels to provide support for the market.
The daily volume indicator is still on the fall with no signs of recovery at the moment. The monthly low remains the last defence area for the buyers. It’s important to pay close attention to that area for a potential buyback.
ARB’s Key Level To Watch
The $1.28 level is temporarily held as support. In the next leg down, the support level to keep in mind lies at $1.2 – a key area of interest for the bulls. Close support to that level is $1.15.
A rebound from the current trading level could launch a quick retest at the previous $1.45 breakdown level. A full recovery could bring a further test at the $1.57 and $1.82 resistance levels before advancing higher.
Key Resistance Levels: $1.45, $1.57, $1.82
Key Support Levels: $1.28, $1.2, $1.15
- Spot Price: $1.3
- 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.
