ARB has a strong potential to recover its losses, all of its losses.
The rally is based on ARB entering a key demand area, and whales could play a role in leading this move.
ARB appeared to be trading inside a cup and handle pattern – a bullish signal that often precedes a major rally.
ARB has struggled to maintain its upward momentum recently, with Alcoin already starting to decline on the charts. In fact, over the past month, Alcoin has dropped by 14.28% on the charts – a trend that has continued over the past week and the past 24 hours as well.
While ARB may see further declines in the short term, it could soon recover and resume its upward trend, offering the potential for higher returns.
ARB Bullish Pattern Forms
ARB started trading inside a bullish cup and handle pattern, as shown on the chart with the highlighted lines. This pattern usually indicates an upward movement for the asset, at least in the short term.
For ARB, the expected rise could push the price to at least $1.5 once the pattern fully develops.
Source: Trading View
However, before the rally takes off, ARB is likely to fall further as it looks for a demand zone with enough momentum between $0.74 and $0.659. Once this level is reached, the asset is expected to head higher.
Buy orders in place for ARB
AMBCrypto analysis found that the demand level on the chart could push ARB higher. According to IOMAP, this demand area aligns with the “In the Money” area, where 13,200 addresses hold 320,000 ARB – making it a high-impact support level.
IOMAP, a tool used to identify key support and resistance areas, revealed the distribution of addresses based on profitability. Here, “in the money” refers to addresses in profit, while “out of the money” refers to addresses at a loss.
When ARB enters this area “in the Money Zone”, the price can be expected to start its upward trend from this point.
Source: IntoTheBlock Binance
The Bull-Bear ratio, which compares the number of bullish whales to bearish whales, revealed 39 bulls and 49 bears. This suggests that bearish whales are likely to push ARB lower, pushing it into a demand zone as they seek favorable prices in line with buying activity before re-entering.
Given this sentiment, ARB’s decline could extend beyond the 5.06% decline recorded on the daily time frame.
Derivative traders enter the market
According to Coinglass, the ARB funding rate has started to rise. It has climbed to a reading of 0.0097% over the past 24 hours, putting it in positive territory.
A positive funding rate indicates that long-term derivatives traders, especially those using leverage, control the market, helping to maintain price stability.
Source: Coinglass
Simply put, the sentiment around ARB is still bullish, and its slight decline could be part of the necessary correction before an upward move.
