Arbitrum’s rounding bottom signals a bullish reversal, with strong resistance at $1.
EMA and MACD indicators suggest sustained upward momentum for ARB.
Arbitrum (ARB) has been making headlines with its recent price action, trading at $0.899 after a minor decline of 0.70% in intraday movements. Earlier, ARB hit a six-month high of $0.9521, reflecting its resilience amidst broader market pullbacks. Over the past month, the token has rallied by an impressive 71%, with trading volumes soaring 77% in the last 24 hours.
The ARB price action currently forms a rounding bottom pattern, also referred to as a saucer bottom, which is a strong indicator of long-term bullish reversals. This pattern suggests a shift in market sentiment from bearish to bullish, with price movements resembling a gradual curve. Investors are now eyeing critical resistance levels at $0.9747 and $1.9006, while key support levels are identified at $0.6558 and $0.4723.
Meanwhile, technically, Arbitrum’s recent rally has surpassed the 200-day EMA and broken through the 23.60% Fibonacci retracement level at $0.86. The bullish momentum gained traction with a bullish engulfing candle on November 5, initiating a 91% surge to date. Furthermore, the EMA indicators have turned favourable, with a potential golden crossover between the 50-day and 200-day EMAs hinting at prolonged bullish strength.
ARB Price Chart, Source: Sanbase ARB To Hit $1?
On the MACD front, a steady rally in the MACD and Signal Lines, coupled with increasing bullish histograms, further corroborates ARB’s uptrend. However, market analysts caution that a potential retest of the $0.86 Fibonacci level might occur before confirming a continued recovery.
Moreover, the current rally aims to challenge the psychological resistance at $1, with an optimistic target at the 78.60% Fibonacci level of $1.8679. If the pattern sustains, market speculations suggest ARB could eye a 2x rally in December.
As ARB’s rounding bottom pattern unfolds, investors are advised to remain vigilant, closely monitoring market dynamics and resistance levels. Will this bullish rally propel ARB into new highs or face resistance ahead? Time will tell.
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