Arbitrum (ARB) Price Rebounds from Crucial Horizontal Support: Signs of a Recovery Emerging?
The price of Arbitrum (ARB) bounced up from the important horizontal support zone but has not shown any short-term bullish signals. Will it recover in the next few days?
The price of Arbitrum (ARB) broke above the resistance zone of $2.05 on January 10, 2024 with a large bullish candle, marking the continuation of the uptrend. However, it only reached a new all-time high of $2.43 on January 11 and fell back below the $2.05 zone in the following days.
This indicates that the previous breakout was a deviation (red ellipse) and a strong decline would follow. Indeed, the price dropped quickly to the important horizontal support zone at $1.65.
Despite this decline, the ARB price created a dragonfly doji candle yesterday (blue arrow), indicating strong buying pressure at this support zone.
The daily RSI indicator also created a hidden bullish divergence (blue line), a sign that often appears before recoveries.
Therefore, the ARB price is likely to recover to the resistance zone of $2.05 in the near future.
Short-term horizontal resistance zone
Despite the bullish signal from the daily time frame, the 2-hour chart shows that a recovery has not yet occurred.
This is because the ARB price has not broken above the small horizontal resistance zone at $1.73, which led to a strong sell-off yesterday.
The 2-hour RSI indicator is rising but still below 50, indicating an uncertain trend.
The most likely outlook suggests that the ARB price could recover in the near future. The potential target for this recovery is $2.05.
However, the price needs to break above the $1.73 zone to confirm the recovery. If the price is rejected by this zone, it could break below the support zone at $1.65 on the daily time frame.
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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