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Arbitrum: Will sellers exploit these crucial roadblocks?

2min Read

Arbitrum [ARB] short-term recovery faces key obstacles which could offer short-sellers an opening into the market if bypassing them become difficult.

Arbitrum: Will sellers exploit these crucial roadblocks?

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

  • ARB faced a crucial range high and support-cum-resistance level of $1.0623.
  • Long positions were discouraged in the past 12 hours by the time of writing. 

Arbitrum [ARB], a successful Layer 2 (L2) roll-up, has struggled to regain its $1 psychological level in the past week. It dropped below the $1 level after Bitcoin [BTC] retested $24k on 10 June. 


How much are 1,10,100 ARBs worth today


However, BTC reclaimed $25k and crossed $26k, but it remains to be seen if it will flip bullish on the higher timeframe by hitting $27k. ARB hit $0.9075 in the same period before rebounding at press time. But the recovery faces crucial obstacles. 

Can recovery bypass these obstacles?

Source: ARB/USDT on TradingView

ARB has been in narrow consolidation between $0.9075 and $1.034 between 10-18 June. Notably, the range high aligns with a bearish order block (OB) formed on $1.001 – $1.034 (white) on the four-hour chart on 13 June, slightly above the bearish OB lays the 38.2% Fib level of $1.0417. 

In addition, the May support-cum-resistance level at $1.0623 could further make a move up beyond the range high, a bumpy ride for bulls. Hence, a price rejection at the range-high ($1.034) could see ARB retrace to the mid-range of $0.973 or the range low  of $0.908.  

If that’s the case, shorting at the range high could offer a good risk ratio, especially if the drop retests the range lows. 

But a session close above 38.2% Fib level ($1.042) will invalidate the bearish thesis, especially if BTC forays into the $27k zone. But ARB bulls must flip $1.62 into support to gain more edge. 

The RSI and OBV increased, denoting improved buying pressure and demand in the past few days. 

More long positions discouraged

Source: Coinglass


Read Arbitrum’s [ARB] Price Prediction 2023-24


According to Coinglass, long positions had a rough time in the past 12 hours before press time. Over $100k worth of long positions were wrecked, compared to less than $10k of short positions, painting a bearish outlook for ARB. 

Although this could cement a shorting opportunity, a bullish BTC above $27k could expose most into a bear trap. Thus, tracking BTC price action before making moves is crucial. 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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