Arbitrum (ARB) may experience another surge in value if it successfully maintains its current backing

Arbitrum (ARB) may experience another surge in value if it successfully maintains its current backing

Arbitrum (ARB) is currently exhibiting a promising technical outlook, with the potential for a significant bullish surge. The recent rally has confirmed the formation of a double bottom pattern, a strong bullish reversal indicator, on ARB.

The price action of Arbitrum has encountered resistance at an elevated level of around $0.51. However, key support levels, such as the Point of Control (POC) and the Fibonacci level of 0.618, could provide a strong foundation for a potential breakout.

Current technical indicators suggest a potential bullish explosion for ARB. The Relative Strength Index (RSI) is around 60.20, indicating neutral to bullish momentum with room to rise further. The Moving Average Convergence Divergence (MACD) shows a bullish crossover, suggesting upward momentum. Additionally, the price is trading near the upper Bollinger Band, which often precedes volatility and breakouts.

If the support at the confluence of the POC and the Fibonacci level of 0.618 were to hold, the range could extend upward, potentially prolonging consolidation and accelerating an exit from this zone. The next decisive move for Arbitrum will likely occur at this confluence.

However, it's important to note that there are mixed signals and risks to monitor. Recent prices have tested critical support levels near $0.41, with some bearish momentum visible. Some analyses suggest waiting for a break above $0.44 (20-day Simple Moving Average) for a safer entry. The RSI near 28 previously indicated oversold conditions, suggesting a rebound potential but also volatility.

In summary, the convergence of the double bottom pattern, POC, and Fibonacci 0.618 support, combined with bullish RSI and MACD signals, points towards a strong potential for a bullish surge in ARB. Traders should watch for a sustained break above key resistance to confirm this move and consider stop-losses near support levels to mitigate downside risk.

The structure remains intact for a potential double bottom, but it is not activated until $0.51 is broken with volume. A confirmed break above $0.51 with significant volume is required to validate the double bottom model and open the way for a sustained rally.

The trading range remains valid, between $0.26 and $0.51. Without a break above the $0.51 resistance, the double bottom pattern remains unconfirmed. A strong rebound at the confluence of the POC and the Fibonacci level of 0.618 could preserve the double bottom structure and lead to a new push towards $0.51.

This article is written by Hugo Le follézou, a passionate explorer of the blockchain ecosystem. As an expert in the crypto world, Le follézou aims to help investors better understand the opportunities and challenges of the crypto market. He uses his knowledge of SEO and web writing to transform news and technical analyses into digestible and impactful content.

ARB investors will need to keep a close eye on the next technical developments, as they will play a determining role in the future price direction. A rebound from the support zone could reignite the bullish scenario, while a failure at the POC could potentially lead ARB to fall back towards the initial lows of $0.26.

[1] Source: TradingView, CoinMarketCap [2] Source: Investopedia, Coin Bureau [3] Source: CryptoCompare, Glassnode Alerts

Technology plays a significant role in the potential bullish surge of Arbitrum (ARB). The double bottom pattern and key support levels, including the Point of Control (POC) and Fibonacci level of 0.618, are critical technological indicators that could propel ARB towards a potential breakout. Furthermore, various technical indicators such as the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and the trading position near the upper Bollinger Band, are all positive technological signs indicating a potential bullish explosion for ARB.

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