As a triangle pattern traps Arbitrum, sellers pressurize $0.66 support. Will bulls sustain dominance to turn the tables?
With the crypto market gradually turning bearish, the total crypto market cap excluding Bitcoin BTC $84 591 24h volatility: 1.0% Market cap: $1.68 T Vol. 24h: $30.04 B is down to $1.43 trillion. This records a massive drop of 5.66% from $1.53 trillion yesterday. Amid the pullback, Arbitrum is holding at a crucial support level, with buyers hoping for a comeback. The broader market pullback warns of an intense correction.
Arbitrum Tests Crucial Support at $0.66
In the daily chart, the ARB price ARB $0.30 24h volatility: 1.8% Market cap: $1.41 B Vol. 24h: $135.00 M action reveals a local resistance trendline, keeping the bullish growth under check. With the lower-high formation, the ARB price finds strong support near the $0.665 mark.
The support level has provided a bullish reversal twice in the past 30 days. Currently, Arbitrum trades at a price of $0.6870, with a 24-hour low at $0.6701. This reveals a lower price rejection from the crucial support level.
Furthermore, the daily RSI line reveals a bullish divergence in the past two bottom formations. This increases the chances of an uptrend, with which ARB could re-challenge the local trendline.
However, the growing bearish influence has resulted in a bearish crossover between the 50 and 200 EMA lines. This marks a death cross event and increases the chances of a downtrend continuation.
Considering the broader market stabilizes, a bullish comeback in Arbitrum could break above the resistance trendline. Using the trend-based Fibonacci levels, the trendline breakout rally is expected to reach the $1 psychological mark near the 50% level.
Optimistically, the price targets extend to $1.7984 or the 100% Fibonacci level. On the flip side, a bearish continuation will challenge the crucial support at $0.58 or $0.4724.
On-Chain Data Supports Bullish Comeback Chances
Amid the ongoing pullback, the Global In-and-Out-of-the-Money indicator from IntoTheBlock showcases the At-the-Money Zone as a crucial crossroad. Currently, the At-the-Money Zone holds 4.12 million ARB tokens.
However, the growing selling pressure is likely to test the next crucial support zone, extending between $0.62 and $0.65. This zone holds 7.04 million ARB tokens within 367 addresses, marking a solid demand zone that could help Arbitrum regain a bullish stance.
Currently, the Global In-and-Out-of-the-Money indicator reveals 4.97K addresses holding nearly 17 million ARB tokens in the money.
Analyst Projects 46% Swing in Arbitrum
Supporting the upside chances, Ali Martinez, a crypto analyst, has highlighted a bullish analysis for Arbitrum. In his recent X post, formerly Twitter, Martinez highlights a descending triangle pattern holding the ARB price trend.
In case of a breakout rally, ARB price is likely to test the previous peak at $1.2404. This reveals an upside potential of 46% if the buyers manage to overcome the resistance trendline.
Arbitrum’s price action teeters on a critical support level, with a breakout rally toward $1 hinging on broader market stabilization. However, a breach below $0.665 could accelerate bearish momentum, testing deeper support zones near $0.62.