Arbitrum (ARB) Technical Analysis and Trade Outcome
Previous Analysis (July 14):
On July 14, Arbitrum (ARB) showed promising signs of upward movement. The 1-hour chart indicated an ascending triangle pattern, typically a bullish signal.
The Relative Strength Index (RSI) was neutral to bullish, and the Moving Average Convergence Divergence (MACD) suggested upward momentum.
On the 4-hour chart, indicators also supported a bullish trend. The RSI was neutral to bullish, and the MACD was positive, indicating short-term bullishness.
The price was near the Volume Weighted Average Price (VWAP), suggesting balanced buying and selling pressures. Increased trading volume supported a potential breakout. However, caution was advised as the price was below the 200-period moving average (MA200) on both charts, which could act as resistance.
The trade reached TP1 at $0.7782. The stop-loss was then moved to the entry point to secure gains. However, the price retraced, triggering the stop-loss at the entry point and closing the trade without additional gains beyond TP1.
The ARB trade successfully hit TP1, securing partial gains. The price then retraced to the entry point, closing the trade without further profit. This outcome highlights the importance of setting strategic take profit levels and adjusting stop-loss orders to manage risk.
Disclaimer: Trading cryptocurrencies involves substantial risk and may not be suitable for all investors. This analysis is for informational purposes only and should not be considered financial advice. Always conduct your own research and consult with a professional before making any trading decisions.
