<

Arbitrum (ARB) Price Breaks Below Important Support, Is A Sell-off Happening?

The price of Arbitrum (ARB) has broken down below a significant support zone and shown signs of weakness. It is likely to continue correcting in the near future.

Weekly Outlook

The price of Arbitrum (ARB) broke above the crucial resistance zone at $1.75 and reached an all-time high of $2.43 in the first week of 2024.

Following the initial decline, the price successfully confirmed the $1.75 zone as support during the week from January 22nd to 28th (green arrow) and rebounded.

However, the recovery phase failed to push the price to a new ATH for several weeks, signaling selling pressure at higher levels.

Last week, the price broke down below the $1.75 zone and is in the process of confirming it as resistance once again (red arrow). This is a sign of weakness, indicating that the bears have regained control.

The weekly RSI indicator has broken down below the ascending trend line and is sloping downwards, supporting the possibility of further decline.

Therefore, the ARB price may decline to the next important support zone at $1.3 in the near future. This figure corresponds to a decrease of 20.98% from the current price level.

ARB/USDT weekly chart. Source: TradingView

Breaking the Short-Term Pattern

The daily chart shows that the ARB price has broken down below an ascending parallel channel and confirmed it as resistance on March 21st (red arrow).

The daily RSI is approaching the oversold zone and sloping downwards, signaling that the bears are controlling the price action in the short term.

Therefore, the ARB price is likely to continue declining towards the target of the pattern at $1.33, which coincides with the mentioned support zone above.

ARB/USDT daily chart. Source: TradingView

Conclusion

The most probable outlook suggests that the ARB price will continue to correct in the near future. The potential target for this correction is $1.3.

The bearish view will be invalidated if the ARB price reclaims the $1.75 zone on the weekly timeframe.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

Follow us on Reddit

You might also like