Arbitrum Faces Uphill Battle to Maintain Crucial $1 Resistance – Bulls Need to Defend These Key Support Levels
According to a recent analysis by Rekt Capital Arbitrum (ARB), a cryptocurrency in the spotlight for its volatility, is facing a significant challenge. The asset has recently completed a move via a red path, indicating a potential relief rally.
However, the $1 mark remains a psychological level that the cryptocurrency struggles to flip into new resistance. Market analysts are closely watching this level, as its ability to hold or break it could set the tone for ARB’s future price action.
Threat of Losing the Green Zone Support
Adding to the concerns is the green box area, which has acted as a support level for ARB. Recent trading patterns suggest that there is a threat of the price even losing the bottom of this green area.
If ARB’s weekly closes fall below this zone and turn it into new resistance, the asset could enter a swift downtrend. This would trigger a phase where the cryptocurrency would be in a quest to discover new levels to find support, which could be detrimental for long-term holders.
For ARB to avoid a potential freefall, it must protect its ~$0.91 support level. This is considered a critical point that could either make or break the asset’s short-term outlook. If ARB manages to hold this level, it could forgo the fate of entering a downtrend and even attempt to retest higher resistance levels. On the flip side, failing to hold this support could accelerate the asset’s decline, causing concern among investors and possibly leading to a sell-off.
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Show more +The coming weeks are crucial for ARB as it teeters on the edge of significant support and resistance levels. The $1 mark and the green box area are the immediate levels to watch, while the $0.91 support level acts as the last line of defense against a potential downtrend. Investors and traders are advised to monitor these levels to make informed decisions closely. Failure to hold these could spell trouble for ARB, while successfully defending them could offer a glimmer of hope for a bullish reversal.
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