Overall, the crypto market has experienced a downturn since then Bitcoin and many other coins such as Ethereum have set a new all-time record of which Arbitrum (ARB) was not left behind.
Arbitration, which has a lot of potential with a market cap of over $3.8 billion and a circulating supply of 2,653,939,384 ARB, has been trading below its 100-day moving average (MA) for some time. Lately, however, ARB’s price has been showing some signs of reversal.
At the time of writing, Arbitrum was trading around $1.45, indicating a 1% increase in the past 24 hours. There are currently two major resistance levels at $1,799 and $2,278 ahead of the price.
Technical indicators are showing signs of an upward movement in the arbitrage price
4-hour RSI indicator: Looking at the Relative strength Index (RSI) indicator from the 4-hour time frame we can see that the RSI line rises above the oversold zone and heads towards the 50 level. This indicates a rise in price, and if the RSI line rises above the 50 level, it could trigger the start of a new trend.
The image below shows more:
4-hour MACD: Looking at the formation of the MACD indicator from the 4-hour time frame in the above image, we can also see that both the MACD line and the signal line, which has been trending below the MACD zero line for a while, both have passed and are heading towards the MACD zero line.
On the other hand, the MACD histogram is already moving above the MACD zero line. This suggests that there could soon be a change in direction from a downward movement to an upward movement.
1 hour bull power vs bear power histogram indicator: Finally, if we take a close look at the chart from the 1 hour time frame using the bull power vs bear power indicator, it turns out that the histograms are already above the zero level. This suggests that buyers are gradually taking over the market from sellers, as shown in the image below.
In conclusion, if Arbitrum’s price manages to change its direction from downward to upward direction, it is possible that ARB could retest its previous major resistance levels at USD 1,799 and USD 2,278 and even go further to create a new peak. Nevertheless, if Arbitrum fails to move up, the crypto asset’s price could move further down and create a new low.
Featured image from Shutterstock, chart from Tradingview.com
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