Arbitrum The price is showing signs of weakness by falling below an important support zone. Therefore, it is possible to comment that the correction is likely to continue in the near future.
However, recently the price of ARB broke above the key resistance zone of $1.75 and reached an all-time high of $2.43 in the first week of 2024. After the initial decline, the price recovered and successfully confirmed the $1.75 zone as support during the week of January 22-28 (green arrow).
As a matter of fact, the recovery process could not move the price to a new peak for several weeks, indicating that there was selling pressure at higher levels.
Last week, the price broke below the $1.75 zone and reaffirmed this zone as resistance once again. This could be interpreted as a sign of weakness in Arbitrum, indicating that the bears have regained control.
The weekly RSI indicator has broken below the ascending trend line and is sloping downwards, supporting the possibility of further declines.
Therefore, it can be predicted that ARB price could decline to the next important support zone at $1.3 in the near future. This figure corresponds to a decrease of 20.98% from the current price level.
The daily chart shows that Arbitrum price broke below an ascending parallel channel, confirming it as resistance on March 21.
The daily RSI indicator is approaching the oversold zone and sloping downwards, indicating that the bears are controlling the price action in the short term. Therefore, it seems likely that ARB price will continue to decline towards the $1.33 formation target, which coincides with the above-mentioned support zone.
The most likely scenario sees Arbitrum price continuing to correct in the near future. The potential target for this correction could be $1.3.
However, the bearish view may be invalidated if ARB price reclaims the $1.75 zone on the weekly time frame. In this case, the possibility of the price rising again may increase and a new uptrend may begin.
