Arbitrum (ARB) Price Shows A Weakening Signal, This’s A Potential Downside Target
The price of Arbitrum (ARB) has created a deviation above a significant resistance area, indicating signs of weakness. It could continue to decline in the near future.
The price of Arbitrum (ARB) has recovered since touching a yearly low of $0.9 on June 15th. During this period, it reclaimed the $1.06 area and broke above the important resistance level at $1.25. This action could have potentially pushed it towards the next resistance level at $1.5.
However, it turned out to be a deviation (highlighted in red ellipse) as the price only touched a high of $1.35 and then declined below the $1.25 area on July 24th. This is a bearish development, often followed by sharp declines.
The daily RSI indicator has dropped below 50 and is trending downward, supporting the continuation of the downward trend.
Therefore, the ARB price is likely to continue declining towards the nearest horizontal support at $1.06, marking an 8% decrease from the current price.
The ARB price has formed a short-term bearish structure since the aforementioned $1.35 high. This structure has a key level at $1.2. As a result, the short-term trend will be considered bearish until the price surpasses this key level.
Indeed, the recovery attempt of ARB was halted by the $1.2 area on August 9th (red arrow).
Similar to the daily timeframe, the 4-hour RSI indicator also supports the continuation of the downward trend.
The most likely prospect suggests that the ARB price will continue to decline towards $1.06 in the near future.
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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