Following a huge collapse this week, Arbitrum moved out of a two-week consolidation phase and continued to break down daily. It has lost a key support level and is now rolling back to its launch price level.
So far, ARB has seen a notable reduction over the past 72 hours as it continued to show signs of weakness on a daily scale. Looking back, it has lost more than half of its valuation from the peak of $2.4 – where it initiated sell earlier this year.
Meanwhile, the latest price crash came after witnessing a slight break in selling, which later led to a two-week consolidation above the $0.75 level. But unfortunately, the bears resumed pressure and it lost grip.
During today’s surge, the price broke through a key support level of $0.6 to a low of $0.565 about three hours ago. It has recovered briefly back to this support but still looks poise for more drops. If the bears pull the price lower, $0.5 (launch price level) would be the next area of interest to keep in mind for a test.
The bulls are currently off the market. If they react strongly to this launch price level, we can expect a buyback. If not, ARB will continue to dip until it finds solid ground.
ARB’s Key Level To Watch
Source: Tradingview
Now that the next bearish target level is identified above, a drop below this level could facilitate a huge sell-off to the $0.3 and $0.1 levels.
Currently, the $0.74 resistance is considered as a retest level for the bulls if the price increases. Higher resistance levels to watch for a recovery are $0.86 and $1.
Key Resistance Levels: $0.74, $0.86, $1
Key Support Levels: $0.5, $0.3, $0.1
Spot Price: $0.59
Trend: Bearish
Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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