- Arbitrum (ARB) is gaining upward momentum as overall market conditions improve, supported by Bitcoin holding key support and driving altcoin rallies.
- A falling wedge pattern is forming on the daily chart, suggesting a potential bullish breakout as trading volume continues to decline near the apex.
- Analysts highlight multiple target levels for a breakout but advise using tight stop-loss strategies due to ongoing market volatility.
Arbitrum (ARB) is on the way to its positive momentum, waving a bullish trend and experiencing a surge in its price with the overall market due to recent market movement. Now, the Bitcoin is on its initial key support level, creating market stability and propelling the altcoins rally to further upward movement. Arbitrum is one of the coins benefiting from this rally.
At the time of writing, Arbitrum is trading at $ 0.3034 with a 24-hour trading volume of $ 71.67M and a market cap of $ 1.4B. The ARB price over the last 24 hours is up by 3.94%, but on the higher timeframes, its price is hit by market volatility, and over the last week, it is down by 1.58%. Overall, the market is bullish, and ARB is showing signs of further upward momentum.
Source: CoinMarketcap
Arbitrum Price Poised for Bullish Pattern to $0.85
One leading crypto analyst analyzed a bullish setup emerging on the daily chart of Arbitrum (ARB). The ARB is building a falling wedge pattern, a typical chart pattern used to predict an emerging trend change. The pattern where the range of sloping support and resistance lines narrows is more likely to be followed by an upward breakout, especially if coupled with diminishing volume.
ARB approaches the apex of the wedge to see an upside break past the resistance trendline. The analyst has established a series of higher targets at $0.3949, $0.4772, $0.6226, and $0.7402 if confirmed, with the target furthest to the north at $0.8578. These levels are founded on past resistance levels and Fibonacci retracement levels, suggesting high recovery potential under escalating buying pressure.
Source: X
Regardless of the sentiment, the analyst recommends caution, recommending tight stop-loss orders to protect from false breakout risk. Albeit statistical models indicate that descending wedges are bullish, cryptocurrency markets have historically been volatile, so risk management is always necessary. The next directional movement is now anticipated as ARB tests the edge of its current downtrend.
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