Arbitrum (ARB) might see a price surge, according to an analysis by crypto analyst Bitcoin Buddha. In a tweet, Bitcoin Buddha suggested that $ARB is approaching a potential breakout from a triangular pattern, which could drive its price above the $1 mark.
Currently trading around $0.5969, ARB has shown signs of recovery, and market watchers are keen to see if this bullish trend continues.
What you'll learn 👉
Triangular Pattern Signals Potential Breakout
The analysis shared by Bitcoin Buddha highlights a triangular consolidation pattern that has formed on the $ARB chart. This pattern, characterized by converging blue lines, suggests that the token has been consolidating after a period of decline.
Such formations often precede price movements, and the current upward pressure indicates a possible breakout. The recent action shows $ARB testing the upper trend line of the triangle, which could lead to a strong upward move if breached.
One of the focuses of the chart is the green arrow leading to the upward projection, which suggests that $ARB may go above $1 if it is to breach the level. This feeling corresponds to the tweet made by Bitcoin Buddha who assured that there would be a bounce back. Moreover, he noted that those who held the currency would make profits compared with the short term holders.
Key Support and Resistance Levels
The chart analysis identifies several critical support and resistance zones that could impact $ARB’s price movements. The token’s support levels include $0.4297, $0.8000, and $0.8648, which have proven resilient during previous declines.
On the upside, resistance levels of $1.2716, $1.6000, and $1.7587 represent hurdles that $ARB may encounter if the anticipated breakout occurs. The highest resistance level observed on the chart is $2.2837, indicating a potential long-term target if bullish momentum sustains.
The support levels have held firm despite fluctuating prices, suggesting a solid foundation for future upward movement. If $ARB can maintain this strength, a breakout could see it surpass the $1 mark, targeting higher resistance points as it gains momentum.
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Expert’s Perspective on Long-Term Holding
Bitcoin Buddha’s tweet emphasized that long-term holders of $ARB are likely to outperform day traders. This perspective points to a broader trend of sustained growth rather than quick gains, hinting at a more robust market outlook for the token.
The confidence expressed in the tweet resonates with the technical analysis, suggesting that $ARB could recover and move higher, attracting investors looking for long-term opportunities. Moreover, the tweet further reinforces the bullish outlook for $ARB, underscoring that a return to prices above $1 might just be a matter of time.
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