Arbitrum (ARB) appears to be challenging the formation of a descending triangle pattern after recent gains. If ARB can surpass the key resistance level, it has the potential for further gains, depending on investor support.
Arbitrum Price Analysis
The price of Arbitrum is currently showing signs of a possible rise towards $1.21. The likelihood of this happening largely depends on the positions taken by investors.
If ARB investors make a positive move, there could be a recovery in the altcoin’s price.
Considering the recent declines and price volatility, a price increase for ARB could resume in the coming days. The Market Value to Realized Value (MVRV) Ratio suggests that Arbitrum is currently at a low level.
The MVRV ratio is used to assess investor profit or loss. A 30-day MVRV of -17% for Arbitrum indicates losses while also potentially indicating an opportunity for accumulation.
Historically, ARB price increases have occurred within the -12% to -25% MVRV range, making this region an opportunity for accumulation.
Therefore, if ARB holders choose to accumulate, they may benefit from a potential future rally.
In addition, Bitcoin’s price movements could also impact Arbitrum’s price. Bitcoin, the undisputed leader, is seen reclaiming the $65,000 support level.
With a correlation rate of 0.91 between Arbitrum and BTC, an ARB movement could mirror Bitcoin’s movement. This would be significant for a potential rise in Arbitrum’s price.
Price Forecast for ARB
Arbitrum’s price appears to have broken out of the descending triangle pattern it has been in for about a month. This pattern suggested a potential correction. However, the fact that ARB did not drop below $1 indicates that this level could now act as support.
If this level is confirmed as support, it could pave the way for a price increase in Arbitrum. Taking these factors into account, ARB could potentially convert the $1.10 and $1.21 resistance levels into support.
However, in the event of a potential decline, Arbitrum’s price could fall below the $0.99 support level and lower levels could emerge.
Please note: The information provided in this article should not be considered investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.