The crypto market experienced a significant decline on January 3rd, with Bitcoin dropping 6-7% to $43,000. This drop is believed to be in response to concerns about the potential denial of the SPOT Bitcoin ETF by the US SEC. However, despite the sell-off, Arbitrum (ARB), an Ethereum Layer 2 scaling solution, showed resilience and surpassed the $1.82 mark. This level not only marks a recovery point but also signifies a breakout from a bullish reversal pattern called the rounding bottom.
The ARB price recovery can be attributed to several factors. First, there was a long-tail rejection candle in the daily candle, indicating that buyers were accumulating at the price dip. Second, a rounding bottom pattern has governed the current recovery in ARB price. Lastly, the intraday trading volume in ARB has seen a significant gain of 110%.
The trajectory of ARB’s price recovery began in late October when it bounced back from a low of $0.76. Since then, it has surged by 140% and is currently trading at $1.85. The total value locked (TVL) in the Arbitrum network has also reached a new high of $2.5 billion, indicating growing interest among traders and anticipation of further recovery.
The formation of a bullish reversal pattern amidst this upturn suggests persistent investor accumulation and potential for further gains. Despite the market downturn on January 3rd, buyers quickly countered the drop and pushed the price above $1.82. Maintaining above this level could confirm a rounding bottom breakout and early signs of trend recovery, potentially leading to a 60% increase in ARB’s price.
However, if ARB fails to stay above $1.82, it could signal a delayed recovery as sellers may initiate further price corrections. This bearish scenario could gain more credibility if the US SEC rejects the Bitcoin spot ETF. In that case, ARB may find support at lower price levels, particularly around $1.47 and $1.25.
In terms of technical indicators, the upturn in the upper boundary of the Bollinger Band suggests that buyers are currently dominating ARB. However, the Average Directional Index (ADX) slope rising at 32 Mach indicates that the coin may soon face exhaustion.
Overall, despite the market’s downturn, ARB has shown resilience and potential for further gains. The coming days will be crucial in determining whether it can maintain its recovery and reach its potential targets.
Hot Take: ARB Demonstrates Resilience Amidst Crypto Market Downturn
The recent crypto market sell-off on January 3rd had a significant impact on various cryptocurrencies, including Bitcoin. However, one cryptocurrency that stood out amidst this downturn is Arbitrum (ARB). Despite the overall negative sentiment, ARB demonstrated remarkable resilience by regaining and surpassing the $1.82 mark. This recovery not only marks a breakout from a bullish reversal pattern but also signifies early signs of trend recovery. With growing interest and anticipation in the Arbitrum network, there is a strong potential for further gains in ARB’s price. Investors should closely monitor its performance to see if it can maintain its upward trajectory and reach its potential targets.
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