Arbitrum (ARB) Price Analysis: Is a Breakout to $1.86 Imminent?
Despite Bitcoin’s recent price drop to $92k levels, the ARB price trend continues a rounding reversal. The bullish momentum in Arbitrum is poised to cross the $1 milestone soon. Amid rising upside potential, a breakout rally is targeting the $1.86 mark. Read on for an in-depth ARB price analysis below.
Arbitrum (ARB) Price Performance
On the daily chart, ARB’s price action shows a rounding bottom reversal, gaining significant momentum. The current recovery rally, which began at $0.4598, has surged nearly 100% over the past three weeks. At present, ARB is trading at $0.91, reflecting an intraday gain of 4.87%. This price movement has formed a bullish engulfing candle, counteracting the previous night’s 3.83% drop.
At the moment, the ARB price trend is showing a sideways movement slightly above the 23.60% Fibonacci level, which sits at $0.8608. As the bullish momentum builds, the immediate price target is the 38.20% Fibonacci level, around $1.12. Additionally, the neckline of the rounding bottom pattern coincides with critical resistance, while a resistance zone extends from $1.13 to $1.17, slightly above the Fibonacci level. Therefore, the ongoing rally is approaching significant overhead resistance.
Technical Indicators
- EMA: The recovery rally has surpassed the 200-day EMA, resulting in a bullish crossover of the 50- and 100-day EMA lines.
- MACD: The MACD and signal lines are maintaining a positive trend, with bullish histograms gradually increasing.
Can Arbitrum Price Reach $250?
If ARB breaks past the $1 psychological level, it could fuel a surge in bullish sentiment, propelling the price further. A broader market recovery would also support the continuation of the breakout rally in ARB’s price trend. According to Fibonacci levels, a breakout from the rounding bottom pattern could drive ARB to $1.86, or the 78.60% Fibonacci level.
However, if ARB falls below $0.86, the 200-day EMA at $0.75 may come into play as the next support, followed by a support zone at the 50-day EMA near $0.65.
Curious About Arbitrum’s Future?
Check out our Arbitrum (ARB) Price Prediction for an overview of long-term price targets!
FAQs
What is driving ARB’s recent price recovery?
The recent ARB price recovery is primarily driven by a rounding bottom reversal pattern, bullish EMA crossovers, and a breakthrough above key Fibonacci levels.
What are the key resistance levels for ARB?
The key resistance levels for ARB are the 38.20% Fibonacci level at $1.12 and the resistance zone ranging from $1.13 to $1.17, which aligns with the rounding bottom neckline.
What could invalidate ARB’s bullish trend?
A decline below the critical support level at $0.86 or the 200-day EMA at $0.75 could undermine the bullish trend, leading to a bearish reversal.
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