Despite reaching a new all-time high on April 18, Arbitrum (ARB) price fell sharply on April 18. He is now trying to find support and regain his footing..
Despite this decline, ARB price is still trading above an important horizontal support area. Moreover, the number of waves indicates that the trend is still up. Could ARB Retest Its Recent High Again?
Arbitrum price has fallen after an all-time high
On April 14, ARB price broke out of the $1.50 horizontal resistance area and reached a new all-time high of $1.82 four days later. After the breakout, the same horizontal level that previously provided resistance is expected to provide support.
This is what happened with the ARB price on April 19th. After a sharp drop, the price bounced at $1.50 in the horizontal area, confirming that it is support (green symbol).
Additionally, the long lower wick that was created meant that buyers stepped in at the $1.50 area and pushed the price higher. Therefore, the trend can be considered bullish as long as the price does not close below $1.50.
ARB Price Prediction: Is a New All-Time High on the Cards?
The technical analysis from the short-term 2-hour chart gives a bullish prediction for the ARB price. The main reason for this is the wave count (white).
Elliott Wave Theory is a tool used by technical analysts. Looks for recurring long-term price structures and investor behavior to determine future direction.
The most likely number of waves indicates that the price drop of the ARB token is the beginning of the fourth wave. Since the fourth wave is usually shallow, it could end at the 0.5 Fibonacci retracement support level at $1.49. The level also coincides with a predetermined horizontal support area.
Fibonacci retracement levels are lines that traders use to predict where asset prices may go. Fibonacci retracement levels indicate that after a sharp price move in one direction, the price will correct part of that increase and find support before resuming the original trend.
It can also be used to determine the top of future upward movements. On doing so, the most likely target for the top of the move is $1.90. The target was found by the 4.21 Fibonacci extension of the first wave (white) and the 1.61 extension of the previous decline (black).
However, the minimum price below the top of the first wave (red line) and $1.28 will invalidate the bullish Arbitrum price forecast. This is because according to Elliott wave guidelines, the fourth wave cannot overlap the first wave. Therefore, if that happens, the ARB price could drop towards $1.
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In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.