Arbitrum (ARB) price is at risk of collapsing from the confluence of support levels, something that could trigger a sharp decline.
The level is created by a long-term support line of the ascending parallel channel and an important Fibonacci level. Whether the price rebounds or breaks down can determine the direction of the future trend.
Arbitration price is at risk of collapse
Long term daily chart technical analysis provides decisively bearish ARB price forecast. The main reason for this is the existence of an upward parallel channel.
A bullish parallel channel is a corrective pattern in which the price swings between parallel support and resistance lines before finally breaking out.
The probability of a breakdown increases as the price is trading at the bottom of the channel.
The 0.382 Fibonacci retracement support level (white) coincides with the channel support line, making the $1.30 support area a potential catalyst for the downside move.
According to the Fibonacci retracement theory, the price tends to retrace partially to the previous price level after a significant price movement in one direction before resuming its original direction.
ARB Price Prediction: Could the Rescue Price Rise?
While the daily time frame is bearish, the shorter-term four-hour time frame presents a bullish outlook. The price created a double bottom, which is considered a bullish pattern, which leads to upward movements most of the time.
In addition, the bullish pattern is combined with a bullish divergence on the RSI (green line). This is a type of bullish event in which a decrease in momentum is not accompanied by a decrease in price.
Therefore, it supports the bullish outlook.
If an increase follows, the price could move to the 0.618 Fibonacci retracement resistance level at $1.60. The level also coincides with the centerline of the long-running channel. Reacting once it happens will be crucial in determining future direction.
If ARB price breaks above $1.60, it could reach an all-time high of $1.80. However, a breakout from the channel support line could lead to a sharp decline towards $1.0, which is the 0.618 Fibonacci retracement support level.
For the latest cryptocurrency market analysis from BeInCrypto, click here.
Disclaimer
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.
