ARB inflicts a bearish breakout – Where can bulls seek re-entry?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• ARB witnessed a gradually increasing RSI divergence on the four-hour chart 
• There was a significant whale activity on 19 April – can it influence a recovery? 

Arbitrium [ARB] rallied over 45% on 13 April but entered a consolidation range of $1.58 – $1.80. ARB inflicted a bearish breakout at press time following a sharp Bitcoin [BTC] drop from the $30k price range. But ARB temporarily steadied near the dynamic 50-EMA (Exponential Moving Average). 

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ARB also clocked a 5 million user base after launching its native token a month ago. The milestone reiterates increased network traction, but how will it affect the asset’s short and mid-term prospects? 

Will the bulls find a footing?

Source: ARB/USDT on TradingView

ARB witnessed a price dump after hitting the channel’s upper boundary of $1.798. The downtrend inflicted a bearish breakout but steadied near the 50-EMA of $1.536. At the time of writing, the stochastic RSI hit the oversold territory, meaning sellers may need a break soon. 

If that’s the case, ARB could rebound and move back to its channel. As such, buying at the current level (above $1.57) could offer a good risk ratio, especially if ARB rallies towards the channel’s mid-point of $1.70 or $1.798 and BTC reclaims the $30k price range. Buyers could wait for a local double bottom at the channel’s lower level or pullback retest before making moves. 

However, a close below 50-EMA and $1.4905 will invalidate the above thesis. Such a downswing could sink ARB to $1.4265 or $1.3593. These levels can act as shorting selling targets in such a downtrend scenario. 

Meanwhile, there was increasing RSI divergence with price action, which could play in favor of sellers. In addition, the ADX retreated, suggesting further retracement or likely consolidation. 

ARB saw significant whale activity

Source: Santiment

How much are 1,10,100 ARBs worth today?

The sharp drop was followed by a significant whale activity, with 12 whale transactions worth over $1 million at the time of writing. In addition, the development activity has improved tremendously in the past few days, which could boost investors’ confidence in the token. 

However, the sentiment remained eerily negative despite recent improvements. As such, investors should track BTC’s price action for better trade set-ups.