Arbitrum retraces September’s impulse move — Here are the key levels to watch!

Arbitrum [ARB] token has shed 17.44% of its value over the past week. Its decline was more pronounced than the weekly performance of major crypto assets, reflecting short-term weakness.

The altcoin sector might get a boost if the sentiment stabilizes. Bitcoin [BTC] faces a potentially volatile week as a slew of macroeconomic updates hit the markets. If the crypto market can hold on, a turnaround could be around the corner.

Arbitrum descends to local demand zone

On the 1-day chart, the swing structure was bullish. The rally from $0.131 to $0.255 in September was the latest bullish impulse move on this timeframe. The drawdown in recent weeks was a pullback within this bullish structure.

The technical indicators reflected the difficulties buyers faced during the correction. The CMF was below -0.05 to signal aggressive capital outflows and selling pressure, and the A/D indicator’s decline highlighted the same.

The DMI did not show a strong trend in motion, since the ADX line (yellow) was under 20, but the -DI (red) was at 24 to underline a bearish tilt.

The 1-month liquidation heatmap also highlighted two local magnetic zones at $0.162 and $0.174.

Another, much denser pocket of liquidity sat at $0.205, $0.212 and $0.218, making these levels the swing price targets in case of a bullish rebound.

Will ARB get a bullish rebound soon?

In the coming days, Arbitrum bulls need to defend the $0.162-local low. A brief dip to or below this level, followed by a rebound back beyond $0.17, would be a good sign that the buyers were able to step in and move the price away.

On the other hand, a drop below this level without any kind of bullish reaction would be a sign that the longer-term correction has not yet completed.

Final Summary

• Arbitrum’s long-term trend was bullish after the gains made in August and September.
• Buyers need to show resolve and turn up with capital to hold on to the $0.162-support.