Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ARB’s recovery hit a bearish zone and could derail bulls.
- Funding rates were positive, but buyers lost little market influence.
Arbitrum [ARB] faced a bullish breakout from its narrow range of $0.87 – $0.90 and forayed above the mid-August lows of $0.9160. But the upswing entered a bearish and confluence zone that could tip sellers to gain market control.
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Will ARB reverse recent gains?
Source: ARB/USDT on TradingView
The Relative Strength Index (RSI) climbed above the 50-neutral level and went sideways above it. It shows that buying pressure improved in the last few days but waned off as of press time.
In addition, the Chaikin Money Flow (CMF) failed to reclaim the zero threshold since the end of August. It demonstrates capital inflows into Arbitrum markets remained low in early September.
Despite the bullish breakout from the short-term range of $0.87 – $0.90, the H4 market structure was still bearish as of publication. Besides, price action entered a bearish zone.
The zone also doubles as a confluence of the 50-EMA (Exponential Moving Average) of $0.925, a previously invalidated daily bullish order block (OB) of $0.918 – $1.012 (red), and mid-August lows of $0.9160.
So, sellers could exploit the roadblock and push ARB lower towards the price imbalance and FVG (fair value gap) of $0.896 – $0.904 (white) or the range-low of $0.87. Such a drop could offer shorting gains.
Funding rates were positive but buyers lost little market control
Source: Coinalyze
According to Coinalyze’s 1-hour chart, the funding rates were positive (green bars) and could be inferred as bullish bias. But the CVD (Cumulative Volume Delta) retreated southwards, reiterating sellers gained control after ARB hit the bearish zone explained above.
How much are 1,10,100 ARBs worth today?
On the other hand, the Open Interest rates improved, showing that demand surged slightly in the last few hours before press time. But the uptick didn’t grace the 1 September peak of >$101 million.
The conflicting signals call for close tracking of BTC price movement for risk mitigation and better-optimized set-up.
