Arbitrum Struggles to Maintain Crucial Support While Unibot Teeters on the Edge of a Breakout – What’s Next for Two Trending Cryptos?
Cryptocurrency analyst Rekt Capital recently dissected the technical landscape for two buzzworthy coins: ARB and UNIBOT.
His detailed review uncovered a complex backdrop of downtrends, support levels, and liquidity zones that could shape the future trajectory of these digital assets.
What you'll learn 👉
ARB: A Struggle to Maintain Support
ARB’s Persistent Downtrend
Since reaching its peak in April/May 2023, ARB has been ensnared in a macro downtrend. The decline has been so pronounced that it has pushed the coin’s price back to a crucial psychological support level of approximately $1.
The Importance of the Green Liquidity Pool
Beneath this $1 mark lies a green liquidity pool, a zone where ARB has previously dipped to attract buy-side strength for a potential price reversal. In June, this strategy seemed to work, as the coin experienced a surge in buying power that propelled it back towards its macro downtrend.
A Failed Reversal Attempt
However, ARB’s second foray into the green liquidity pool last month failed to replicate June’s success. The area garnered little interest from buyers, explaining why ARB finds itself back at this precarious position in August.
The Risk of Negative Price Discovery
If ARB closes the month below the $1 psychological support and fails to rally, it could signal a further descent into the green liquidity pool. The more it drops within this zone, the weaker the demand area becomes, potentially triggering a negative price discovery in search of unknown support levels.
Read our analyses: Best Projects on Arbitrum
UNIBOT: Teetering on the Edge
UNIBOT’s Downtrend Saga
Much like ARB, UNIBOT has also been in a downtrend, marked in orange, since it was rejected from its macro downtrend, indicated in blue. Currently, the coin hovers above a key black support level of around $115.
The Green Demand Area: A Make-or-Break Zone
UNIBOT has been downside wicking into the green demand area, a critical zone it needs to hold to break free from the orange downtrend in the coming days.
The Imminent Squeeze
If UNIBOT manages to break the orange downtrend, it could usher in a period of uptrending price action. However, failure to close beyond this downtrend could act as a rejection point, forcing the coin to lose its $115 support and retest the green demand area for strength.
Read our analyses: What is Unibot and How Does it Work?
Conclusion: A Crucial Juncture
Both ARB and UNIBOT are at pivotal moments in their price trajectories. For ARB, the loss of the green liquidity pool could spell disaster, while UNIBOT faces an imminent squeeze between its black support and orange downtrend. Investors should keep a close eye on these levels as they could serve as significant indicators for the coins’ future movements.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
