Arbitrum (ARB) appears to be challenging the formation of a descending triangle pattern after recent gains. If supported by investors, ARB could potentially experience further gains by surpassing the key resistance level.
Arbitrum Price Analysis
When analyzing the price of Arbitrum, it is evident that it is close to reaching $1.21. The likelihood of this happening depends largely on the decisions made by investors. If ARB investors make positive moves, we may witness a recovery in the value of this altcoin.
Considering the recent declines and the volatility in price movements, it is possible that ARB could resume its upward trajectory 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 a reliable tool for assessing investor profit or loss. With a 30-day MVRV of -17% for Arbitrum, it indicates losses but also presents an opportunity for accumulation.
Looking back at historical data, we can observe that ARB price rises have occurred within the range of -12% to -25% MVRV. This indicates that the current MVRV range could be an opportunity for accumulation.
Therefore, if ARB holders choose to accumulate more, they could potentially benefit from a future rally in price. It is worth noting that Bitcoin’s price movements can also have an impact on Arbitrum’s price. As the dominant leader in the market, Bitcoin is currently reclaiming the $65,000 support level.
Considering the high correlation rate of 0.91 between Arbitrum and BTC, it is likely that ARB’s movement will mirror that of Bitcoin. This correlation is significant as it could potentially lead to a rise in the value of Arbitrum.
Price Prediction for ARB
Arbitrum’s price appears to have broken out of the descending triangle pattern it has been in for approximately a month. This pattern indicated a potential correction, but the fact that ARB did not drop below $1 suggests that this level is now acting as support.
Confirming the $1 level as support could pave the way for a price increase in Arbitrum. Taking these factors into account, it is possible that ARB could convert the resistance levels at $1.10 and $1.21 into support levels.
However, in the event of a potential decline, Arbitrum’s price could fall below the $0.99 support level, which could lead to even lower levels.
Please note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research. Stay updated with our news on Telegram, Facebook, Twitter, and Coinmarketcap.
