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The Arbitrum price plummeted over 10% in the last 24 hours to trade at $1.70 at press time.
The Arbitrum Price Retesting Key Support
4-hour chart for ARB/USDT (Source: TradingView)
The Arbitrum price has exhibited notable price movements on the 4-hour chart, drawing the attention of traders and analysts alike. Over the past 48 hours, the closing prices have traced a volatile path, with figures moving from $1.853 to a lower range around $1.6281, suggesting a bearish sentiment in the market.
The 9 Exponential Moving Average (EMA) and the 20 EMA have shown a downward trajectory. This crossover, where the 9 EMA trends below the 20 EMA, traditionally signals a bearish outlook, hinting that the downtrend may persist. Additionally, the Moving Average Convergence Divergence (MACD) indicators further corroborate this sentiment. The MACD line continues to move below the signal line, emphasizing the strength of the current bearish momentum.
Liquid restaking continues to grow on Arbitrum!@OmniFDN 🤝 @eigenlayer 🤝 @KelpDAO https://t.co/DW2wFmaXQB — Arbitrum (💙,🧡) (@arbitrum) March 15, 2024
The Relative Strength Index (RSI), a crucial tool for gauging market sentiment, stands at 22, firmly in the oversold territory. This could indicate that ARB is under heavy selling pressure but also suggests the potential for a price reversal if buyers begin to see value at these lower levels.
Focusing on key technical levels, the Arbitrum price faces immediate resistance at $1.8195. This level must be breached to shift the market sentiment towards a bullish outlook. On the downside, support is found at $1.6268 and further down at $1.5883. A break below these support levels could intensify selling pressure, potentially driving prices towards the next support at $1.4482.
Possible Trade Entries
Given the current bearish indicators, traders might consider short positions with potential entry points just below resistance levels, aiming for exits around the support levels. Conversely, a bullish scenario could unfold if prices rebound off the support, providing long trade opportunities with entries near support levels and exits aiming for the resistance barriers.
The technical analysis of the Arbitrum price on the 4-hour chart points to a bearish phase, with potential for further declines unless a significant reversal occurs. Traders should monitor resistance and support levels closely for entry and exit points in alignment with their trading strategy. However, it’s essential to approach with caution and consider multiple indicators before making trading decisions.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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