CAN $ARB RECOVER? 🤔🤔 Here Is The Answer! 👇
Based on chain data, Arbitrum (ARB) has recently increased its TVL (total value locked) up to $3.1 billion (+30% since May 1)! That's an important metric that shows a positive sentiment (trust) among investors to lock their funds into this project. Also, another significant milestone has been achieved by Arbitrum: over 1 billion transactions have been processed, showing high user activity.
Despite recent gains, ARB remains far off its ATH, currently trading 54% lower. In my opinion, the correction is almost over (see weekly MACD) and if we "zoom out" on a monthly time frame, we can notice that the current price is sitting between R1, S2 and the grey trend. Also, an inverted head and shoulders pattern has been formed (daily time frame). Monthly momentum Indicator (MOM) recently became positive and thus indicate that a potential inversion is ahead. According to the current situation, I'll implement the following strategy:
Short Term Strategy + Hedge
If the price reaches S2, I will open a long position and take profit on R1 (25%) and on R2 (75%). Stop loss on $0.89. Currently, EMA 10, RSI and HUL are bearish and that's why I do wait for S2. In case the market goes against me, I'll open a short position on $0.89 and take profit on S1. It's really important that ARB's price doesn't fall off the gray trend (see the picture) and stays above S2.
Extra considerations:
On June 16, ARB will release/unlock 92.65 million tokens valued at approximately $105.62 million (3.2% supply). That's an extra reason (beside indicators) to be cautious and wait the price to reach S2. For investors who may plan to hold ARB for the medium/long term (at least 3 months), then this current price could be considered for a DCA strategy! In fact, there is still a probability that ARB recovers and reach $2.3
Do You Think ARB Can Reach $2 In the Next Months? 🤔 Let Me Know In Comments!
STAY TUNED! 🔥 & Remember, Your Support Is MASSIVELY Appreciated!👍💪 - DYOR 🙏 NFA.🤝
