Arbitrum holds its breath. Following a prolonged drop, the ARB token is currently testing a crucial support level. Some technical signals hint at a potential bullish breakout... pending the holding of this threshold. A pivotal moment under analysis.
After bouncing from the lows of the range, Arbitrum (ARB) price action has encountered resistance at a high level of around $0.51. This zone has acted as a major ceiling during previous attempts. Although the initial movement seemed promising for a potential trend reversal, the price failed to maintain itself above the top of the value zone. Since then, it has fallen back below on a daily closing basis. This development places the current market structure at a critical point.
The recent rally confirmed the potential for double bottom formation on ARB. However, without a breakout above the $0.51 resistance, the setup remains unconfirmed. The price was rejected at this level and has since lost the top of the value zone. This is a key support level that typically sustains the continuation of the uptrend. With this level now breached, attention turns to the point of control (POC). It sits below the current price and offers the next major potential technical support zone.
The POC, which coincides with the 0.618 Fibonacci level, constitutes a crucial technical confluence zone. A strong bounce from this area could reignite the double bottom scenario and pave the way for a new bullish phase. However, if this support were to crumble, ARB risks falling back toward the initial lows of $0.26. This would extend the current consolidation phase.
Also, although the double bottom structure is present, it has not yet been activated. Only a confirmed breakout above $0.51 with significant volume will validate the pattern and open the way to a sustained uptrend. Until then, the price will remain in a reactive zone with great technical importance.
The next decisive move for ARB will most likely occur at the confluence level of the point of control and the 0.618 Fibonacci level. A strong bounce at this level could preserve the double bottom structure and lead to a new push toward $0.51. However, if this support should give way, the range could extend downward, prolonging the consolidation and delaying the exit from this zone.
Investors in this cryptocurrency will need to stay attentive to upcoming technical developments. They will play a determining role in the future direction of the price. Whether or not the double bottom activates will be a key element to watch closely in the coming sessions.
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
