Arbitrum Price Bounces After All-Time Low
The price of Arbitrum (ARB) has experienced an increase after reaching a new all-time low on September 11. However, this increase has occurred within a corrective pattern and there is a lack of alignment between the price action and the RSI, making it difficult to determine the future direction of the trend.
Decrease in ARB Price Since All-Time High
The ARB price has been decreasing since April 18, when it reached an all-time high of $1.82. The decrease has been limited by a descending resistance line. On August 15, the price was rejected at this line, leading to a further decrease and ultimately reaching a new all-time low of $0.74 on September 11. This downward movement also caused a breakdown from the $0.95 horizontal support area.
Although the price has increased since then, it is still trading below both the $0.95 horizontal resistance area and the descending resistance line. These two resistances will intersect at the beginning of October.
Bullish RSI and Conflicting Price Action
The daily RSI for ARB is leaning bullish. Traders use the RSI as a momentum indicator to identify overbought or oversold conditions and make decisions regarding buying or selling assets. Readings above 50 and an upward trend suggest that bulls have an advantage, while readings below 50 indicate the opposite.
However, there is a discrepancy between the daily price action and RSI. While the RSI is increasing and has broken out from a descending resistance line, indicating bullishness, the price action remains bearish. This lack of alignment makes it challenging to predict future price movements.
Will Arbitrum Price Reach $0.95?
The short-term two-hour timeframe provides a mixed reading, similar to the daily timeframe. The price action shows that the entire bounce in ARB price has occurred within an ascending parallel channel since the all-time low. These channels typically contain corrective movements, suggesting that a breakdown from the channel is the most likely future scenario. Although the price reached the resistance line on September 20 and has slightly fallen, it is still within the upper portion of the channel.
On the other hand, the RSI is bullish, with an upward trend and a value above 50. This indicates a bullish trend. The outcome of whether there will be a breakout from the channel or a rejection will determine the ARB price prediction. A breakout could lead to a 12% increase to $0.95, while a rejection could result in a drop to the support line at $0.81, representing a 5% decrease.
Hot Take: Uncertainty Surrounding Arbitrum Price
The recent bounce in Arbitrum (ARB) price after reaching an all-time low has brought some relief to investors. However, there are conflicting signals between the price action and RSI, making it difficult to determine the future direction of this cryptocurrency. While there is potential for further increase if a breakout occurs, there is also a possibility of another decline if a rejection takes place. Traders should closely monitor key resistance levels and observe whether the bullish momentum can be sustained. As always, investing in cryptocurrencies involves risks and it’s important to conduct thorough research and analysis before making any decisions.
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