Today, as part of our usual social network poll to determine the asset to be analyzed, it’s the token ARB from the Arbitrum project project. With a under the dollarThis is a good time to take stock of the asset situation, the levels to watch over the coming weeks and months as well as the bias to have on ARB. Without further ado, let’s head over to TradingView.
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ARB drops back below one dollar, weekly support broken?
On the weekly time scale, the ARB cryptocurrency is in bad position since July following a rejection on a weekly resistance zone at 1.28 dollar. Having lost the range pivot in the process, ARB is now below a key technical level: the lower boundary at $0.992.
From now on, all that’s at stake is the ability of the Arbitrum token to maintain its range by not closing below the lower boundary. If it does, it will be a positive sign which would suggest a bullish scenario, with a rebound towards the weekly pivot.
However, if ARB fails to trigger bullish momentum by saving the weekly close, a hold below the low boundary will probably pave the way for a continued fall in share price. In this context, what can we expect? The most likely outcome is a return, initially, to the previous lows at $0.90.
A return to $0.70, a long-term opportunity?
For our second part of the analysis, it seems interesting to look at a smaller time scale (daily). We can see that ARB has been trying to hold above its lower limit for the past few days. Currently below this level, will it be able to regain it on the upside? As mentioned above, a loss of the lower boundary will lead ARB to revisit June low last June. However, as the fall may be more significant, we can define a technical level at 0.71 dollarcorresponding to 1.618 Fibonacci of ARB’s previous bullish leg.
So that Arbitrum’s token doesn’t return to this level, what must it do besides reintegrate the lower range boundary? It must also break free of the previous technical support on the upsideat $1.06. It is possible that this level could act as resistance when ARB returns to it. However, to seriously rule out the bearish scenario, the price will have to return to the range pivot as soon as possible (grey area) as soon as possible, so that the $1.30 level can be reached again.
A mixed position on OP
For several months now, we have been able to evaluate the balance of power between the two active players, ARB and OP, of the ethereum L2 which are currently at the heart of the community’s attention. For this reason, it seems worthwhile to make a graphical comparisonof the two assets on a daily basis.
While OP was in underperformance against ARB between April and June 2023, registering a much more powerful decline, the arbitrum token was holding up rather well within a range phase. However, the momentum of recent months seems to be running out of steam or even reversing. OP is holding up rather well in the current market downturn, which is not really the case for ARB, which has just fallen back below a key threshold at $1. Leading position ahead of ARB? This is not not yet the caseon the one hand, because of its position in relation to OP and, on the other lack of perspective on the evolution of blockchain with regard to the number of developers and many other data concerning transactions, users or the number of unique wallets.
Here we are at the end of analysis of the ARB cryptocurrency from the Arbitrum project. As you’ve seen, the challenge now lies in the token’s ability to return to its rangewhich could be an opportunity to take part in a outperformance position against OP if the latter is finally in offset from the rest of the market. However, to reaffirm its buying momentum on a weekly basis, ARB will have to break free of its pivot as quickly as possible in order to gradually return to the 1.30. However, these numerous price targets may seem uncertain when one considers that a large number of ARB tokens waiting to be released.
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