The price of #arbitrum has successfully surpassed the $0.9703 neckline, therefore validating a breakout in accordance with the double bottom pattern.
The #arbusdt cryptocurrency has the potential to experience a significant increase of 30% in value, driven by important on-chain data. This rally aims to reach a breakout goal of $1.2735, a price level that was last tested in July.
The bullish thesis will be invalidated in the event that the cryptocurrency breaches and subsequently concludes trading below the psychological threshold of $0.9000 on the daily timeframe.
The price movement of Arbitrum (ARB) from August to October has resulted in the construction of a double-bottom technical pattern. This occurrence coincides with a period of overall market optimism, mostly driven by the prominent cryptocurrency, Bitcoin (BTC).
The price movement of Arbitrum exhibits the formation of a double-bottom pattern.
The price of Arbitrum (ARB) has successfully regained all the previously lost value during the month of October, and has even surpassed it. This is evident from the price movement seen between August 25 and October 31, which exhibited a formation resembling a double bottom pattern.
This phenomenon in technical analysis is observed when the price of an asset reaches a minimum point known as the support level, then rebounds towards the neckline, experiences another decline to the same support level, and then rebounds once more towards the neckline. By doing so, it generates a configuration like the letter "W".
The market has had two instances in which it was unable to surpass the support level, indicating the possibility of a reversal towards an upward trend. The initial bottom in a double bottom pattern is indicative of the presence of initial support, while the second bottom signifies the emergence of buying pressure. The measurement of the breakout goal of a target is achieved by assessing the distance between the support level and the neckline, and subsequently overlaying this measurement at the time of breakout.
The price of Arbitrum is anticipated to experience a 30% increase, reaching $1.2375.
Following a verified breach of the neckline in the double bottom pattern at a price of $0.9703, the Arbitrum price experienced an 8% increase, reaching the level of $1.0440 to challenge the 50% Fibonacci retracement of the downward movement from $1.3500 to $0.7380. Nevertheless, the aforementioned level exhibited resistance, prompting a retracement towards the neckline, maybe due to the overbought conditions of ARB.
However, it is worth noting that there is still a reasonable upward possibility, as indicated by the Relative Strength Index (RSI) being above the 50 level and the Awesome Oscillator (AO) maintaining a bullish zone with significant green histogram bars.
If buyer momentum surpasses present levels, it may result in an upward movement of the Arbitrum price, leading to the clearance of the 50% Fibonacci mark at $1.0440, followed by a further upward extension. In an optimistic scenario, it is possible for the ARB market value to surpass the psychological thresholds of $1.1000 and $1.2000, ultimately achieving the projected objective of $1.2375, which represents a significant increase of 30% from its current levels. In instances with significant ambition, the price of Arbitrum has the potential to reach a notable level of $1.3500.
The on-chain measurements of Arbitrum provide evidence that supports a positive and optimistic perspective.
The behavior analytics platform Santiment provides evidence in favor of a positive prognosis for the price of Arbitrum. It indicates a notable increase in the number of unique daily active addresses, suggesting heightened levels of crowd engagement or speculative activity surrounding the ARB token.
Additionally, it is worth noting that the ARB network chart has a significant upward trend, indicating a consistent increase in the creation of new addresses on the Arbitrum network on a daily basis. This trend signifies a gradual expansion in user acceptance over time, hence indicating a positive momentum. The observed increase in the supply of #Tether (USDT) stablecoin suggests a notable rise, which implies a movement of cash as investors seek to acquire ARB.
Interestingly, there has been an increase in the frequency of whale transactions involving ARB that exceed the values of 100,000 USD and one million USD. The increase in activity indicates substantial involvement from prominent participants and key financiers within the bitcoin industry.
On the contrary, if there is a surge in seller momentum, it may result in a decline in the Arbitrum price below the neckline level of $0.9703, or maybe much lower, in order to assess the psychological threshold of $0.9000. This level holds significant importance as a major support level. The bullish thesis would be rendered invalid if there is a definitive daily candlestick closure below this particular level.
In a hypothetical scenario, the decline might potentially cause the price of Arbitrum to reach the support level of $0.7380. The proposed action would result in a decrease of 30% from the existing pricing.
