ARB’s Upside Potential: Signs of a Reversal Expected in the Cup and Handle Pattern

Cryptocurrency ARB is trading inside a significant “cup and handle” pattern, signaling a potential bullish move.

Despite experiencing a 14.28% decline in the last month, there are signs that ARB could regain lost ground if it successfully reaches the demand zone.$ARB

“Once ARB enters this ‘Profit Zone’, the price can be expected to enter an uptrend here.”

Amidst the recent declines in ARB, there may be signals for a bullish reversal as market dynamics are shifting towards a potential recovery.

Upside Potential: Examining ARB’s Cup and Handle Model
Currently, ARB is exhibiting a bullish cup and handle pattern, a technical formation that is often considered by traders as an indicator that the price is heading higher. Historically, such formations have typically occurred prior to significant price increases and a breakout to the upside following market consolidation. Once the pattern is complete, analysts expect ARB to rally to around $1.5.

However, investors should be careful as ARB could face further declines before reaching a critical demand zone between $0.74 and $0.659, which is critical to providing the momentum needed for a potential rally.

Demand Regions and Market Dynamics Affected by ARB
Analysis from COINOTAG suggests that current demand levels could serve as a turning point for ARB prices. The IOMAP tool highlighted a prominent “Profit Zone” where 13,200 addresses hold a total of 320,000 ARB, marking a strong support area. This area is particularly important for price recovery as trading histories explore profitability thresholds.

In market analysis, the so-called “Profit Zone” areas are where investors are in profit, so these areas are attractive to buyers looking for advantageous buying levels. Furthermore, analysis of whale movements shows a 39 to 49 split between bull and bear accounts, suggesting an ongoing struggle for support. This suggests that bearish pressure could push prices down as ARB struggles to find strong support.

Market Sentiment and Trading Strategies with ARB
On the other hand, the participation of derivatives traders in the ARB market is increasing, as observed by the recent increase in the financing rate to 0.0097%. This positive financing rate reflects the increased confidence of traders who open positive positions, contributing to overall price stability.