Cryptocurrencies recorded notable gains over the past day with Bitcoin showing strength above $105,000.
With experts predicting massive growth for the cryptocurrency industry under the new US government, attention has turned to different projects.
Let’s check out Arbitrum’s current trends and what to expect in the upcoming sessions.
Possible hack of Arbitrum
ARB is trading at $0.7239 after rising nearly 7% over the past day.
The alternative signals a potential bullish return amid strengthening broad market sentiment.
ARB price is hovering at a crucial juncture as it is consolidating near vital support barriers.
Thus, it has attracted attention as enthusiasts await the next step.
Arbitrum has price action within a defined descending triangle formation, a pattern often associated with potentially explosive rallies.
Rose Premium Signals expects an initial move to $1.0690 on a bearish triangle breakout.
Stability above the trend line would support extended gains to $1.3053 and $1.5804.
Achieving these targets would mean an upside of approximately 118% from ARB’s current price.
Levels to watch during a potential ARB breakout
The chart for Arbitrum displays bearish sentiment, reflecting the sell-off that swept the token from its weekend highs of $0.829 to $0.6707 on Monday.
Meanwhile, the ARB is consolidating around a foothold at $0.6890 – which remains crucial for price stability.
Weakness in this area could lead to declines towards the psychological level at $0.6500.
Bulls will have to defend this support to prevent continued declines.
Upside moves from current values will target the nearest resistance at $0.78.
The downtrend line has rejected further gains at this level several times.
Overcoming the hurdle could lead to gains extending to the 0.618 ($0.8661) and 0.786 ($0.9077) Fibonacci retracement levels.
Decisive breakouts beyond these hurdles can spur rallies beyond the required dollar.
Worrying signs that should be taken into account
While enthusiasts expect near-term breakouts, on-chain data and indicators point to a delayed recovery.
IntoTheBlock data highlights notable downward momentum, with none of the four metrics showing positive trends.
Net network growth indicates lower activity of new participants, likely due to lower profitability.
IntoTheBlock details show that more than 80% of Arbitrum investors are making losses at current prices.
Large transactions have declined, indicating participants’ waning interest in whales.
The diminished concentration underscores fading enthusiasm among low-fund investors, which is consistent with ongoing price consolidation.
Technical indicators correlate with ARB’s bearish stance in the near term.
The daily RSI is hovering just above the oversold zone, reading 44 at press time.
The indicator indicates weak momentum, with no hints of bullish divergence indicating seller dominance.
Furthermore, Chaikin’s cash flow has fallen from 0.42 yesterday to 0.04 at press time.
This highlights the decline in funds entering the ARB ecosystem. Such trends could hinder strong rallies amid a breakout.
Arbitrum’s path will depend on its ability to claim and hold above the $0.68 mark.
The move is likely to renew buyer interest in alternative options to support expected breakout highs above $0.78.
The post Arbitrum (ARB) Price Prediction: Charting a Potential 120% Upside After Channel Breakout appeared first on Invezz
