Arbitrum (ARB) Price Breaks Out Strongly: Unveiling a Promising Potential Target
The price of Arbitrum (ARB) has formed a long-term bullish pattern. Completion of the pattern is expected to accelerate the upward momentum.
Inverse Head and Shoulders Pattern
The price of Arbitrum (ARB) has formed an inverse head and shoulders pattern since May 2023. This is a bullish pattern, often leading to breakouts in most cases.
Indeed, after forming the right shoulder bottom during the week of November 20 to 26, the ARB price is making an attempt to break above the neckline of the pattern this week.
The neckline of the pattern is at $1.25, it only needs to close the weekly candle above this level to confirm the breakout.
If successful, the price of ARB is expected to rise to the target of the pattern at $1.76. This target aligns with the resistance zone at the all-time high.
The weekly RSI has bounced up from the 50 levels and is sloping upward, supporting the potential breakout.
The price of ARB has been trading within a rising wedge since November 20. This is a bearish pattern, often leading to breakdowns in most cases.
However, instead of breaking down, the price of ARB broke above the pattern on December 22 with a large bullish candle. Invalidating the bearish pattern will create a bear trap and is often followed by strong uptrends.
The daily RSI has broken above the descending trendline and is above 50, showing that the trend is bullish.
Therefore, the daily chart suggests that the price of ARB is likely to successfully complete the inverse head and shoulders pattern on the weekly timeframe.
The most likely scenario suggests that the price of ARB will continue to rise in the near future. The potential target for this move is $1.76.
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.
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