Arbitrum price is in shambles just like the majority of the cryptocurrencies led by Bitcoin’s plunge to $40,000. With investors jittery over the future of the crypto market in the coming weeks, the path of least resistance is majorly downwards.
The hype preceding the launch of Bitcoin ETFs in the US increased investor risk appetite with many finding ecosystem tokens like Arbitrum attractive.
This support coupled with a positively structured market, backed ARB to explode from support at $0.75 reaching a new all-time high of $2.4 in January.
Therefore, the sell-off following the ETF approval caught many holders unawares, which could explain the sudden spike in selling pressure.
With no sign of an immediate rebound, ARB holders are rushing to offload to protect profits earned in the last few months as well as their capital.
Arbitrum price prediction: Is it time to buy the dip?
A descending channel characterizes the correction from the ATH. Trading at $1.7 during US business hours on Monday, Arbitrum price struggles to hold above the channel’s lower boundary.
Losing a slightly higher support at $1.75 highlighted by the 200 Exponential Moving Average (EMA) (purple), compelled traders to short ARB while possibly aiming to buy the token again at a lower price point.
Two more moving averages including the 20 EMA (blue) and the 50 EMA (red) reinforce the bearish outlook in ARB. On top of that, a sell signal confirmed by the Moving Average Convergence (MACD) implies that sellers have an upper hand.
Despite the technical picture seemingly bearish, those interested in the future aspect of the token, which backs one of the Ethereum ecosystem’s most vibrant projects would consider buying the dips.
Looking out for a rebound from the channel’s lower support boundary around $1.67 might precede a commendable upswing where ARB targets areas beyond $2 and the $2.4 ATH.
Losing the channel support may further weaken Arbitrum’s technical structure. The grey band could help absorb the selling pressure, and keep ARB above $1.6 but if it is lost as well, losses could extend to $1.4, $1.2, and $1 if push comes to shove.
Related Articles
- Solana Price Prediction: Can SOL Outperform ETH Amid Crypto Market Doldrums?
- XRP Price Nearing Historical Accumulation Zone with Eyes on $0.75 Target
- Coinbase ($COIN) Stock Price Prediction Today January 22
The post Arbitrum Price Tumbles 30% From ATH Slashing ARB Holder Profits, What’s Next? appeared first on CoinGape.
from CoinGape