Let's continue analyzing various altcoins and try to calculate potential profits in a bull market if that happens. Today we have $ARB - one of the top layer 2s in the cryptocurrency market. Since March 2024, the price has decreased significantly and has broken the main "scam" support level. Now people do not understand whether Arbitrum will go to zero or if we will see significant profits in the upcoming bull run.
On the chart, you can see the weekly time frame of ARB. After listing, the price has increased significantly; consider this movement as wave 1. The subsequent formation that we cannot explain is an impulse. The impulse wave is just the final decline, as it has 5 clear Elliott waves inside on the lower time frame. As a result, we can interpret this entire movement as an irregular ABC correction, forming major wave 2. You might say it’s bad, but sometimes corrective waves can have very unpredictable shapes.
Chart 1. ARB 1W Time Frame.
As we can see, wave C inside 2 has ended with a bullish reversal bar on the Bullish/Bearish Reversal Bar Indicator [Skyrexio]. This bar is marked with a green dot. This is a very strong reversal signal, with a high probability of starting a bullish phase from now on. It is crucial to break the white line, the lip of the Williams Alligator indicator, and find support above it to trigger growth. If this happens, the next wave is wave 3 with a target area between $3.76 and $6.08. We assume this target will be reached by 2025.