After a prolonged period of slow price action, there are signs that Arbitrum’s native token ARB may be gearing up for a major breakout. As crypto analyst Moustache points out, the token has formed several bullish technical patterns that could propel it to new all-time highs if key resistance levels are surpassed.
Descending Broadening Wedge Breakout
The first bullish pattern highlighted by Moustache is a descending broadening wedge on the ARB/USDT chart. This is a price pattern marked by lower highs and lower lows, with support and resistance lines expanding outward over time.
According to Moustache, ARB appears poised to break out from this wedge to the upside soon. A break above resistance around $1.60 could be the catalyst for a strong rally, especially considering the token’s all-time high sits just above at $1.69.
Inverse Head and Shoulders Taking Shape
In addition to the broadening wedge, Moustache points to a potential inverse head and shoulders pattern taking shape on ARB’s chart. This bullish reversal pattern forms after a sustained downtrend and consists of a left shoulder, a head, and a right shoulder, with the neckline acting as key resistance.
As Moustache notes, if ARB can break out above the neckline, it opens up a path to retest prior all-time highs and possibly set new ones. With the right shoulder currently forming, the moment of truth for bulls could come quite soon.
Ecosystem Poised to Benefit
If ARB does see renewed momentum, Moustache believes it could lift up other tokens in the Arbitrum ecosystem as well. In particular, he cites Rally (RLY) and Winnr (WINR) as two tokens that could piggyback on any ARB strength.
Rally brings branded tokens and rewards programs to Arbitrum, while Winnr focuses on sports betting and predictions. Both leverage Arbitrum for superior speed and low costs compared to Ethereum L1.
Overall, after a relatively quiet 2022, ARB could be gearing up for its next leg higher in 2023 according to crypto analysts. With bullish reversal signs appearing, a break above the $1.60 level could be the gateway to new all-time highs and an influx of growth for the wider Arbitrum ecosystem. Now is the time for investors to pay close attention.
As Moustache says:
“I think the entire ARB ecosystem will fly in the near term.”
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