- Arbitrum price eyes a pullback after a 30% rally.
- An 11% correction to sweep the liquidity resting below $0.981 seems likely for ARB.
- A four-hour candlestick close that flips the $1.14 hurdle into the support floor will invalidate the bearish thesis.
Arbitrum price seems to be exhausted after a recent recovery rally, hinting at a potential correction. The pullback could allow ARB bulls to take a breather while short-term investors book profits.
Arbitrum price ready to shed some weight
Arbitrum price rallied 30% between June 15 and 21 and set up a local top at $1.174. After this point, ARB bulls seem to have taken a break, which has led to a slow correction that has produced three lower highs.
The latest lower high was set at $1.138, and Arbitrum price looks ready to slide down a minimum of 8% and tag the immediate support level at $1.017 support level. In some cases, ARB bears could drive the altcoin as low as $0.981 in search of sell-side liquidity resting below the equal lows formed between June 17 and 20.
Further adding credence to this downswing is the Relative Strength Index (RSI), which has been producing lower lows and currently attempting to stay above the mean level of 50. A failure to do so will signal a takeover by bears and will further add wind to the sails of short-sellers. Likewise, the Awesome Oscillator (AO) also depicts a bearish resurgence as the histograms have declined in magnitude and hint at a transition to sub-zero levels. A successful flip would indicate the dominance of bearish momentum.
Lastly, the Wave Trend indicator also produced a sell-signal on June 22 and continues to decline, indicating that it is time for a correction. In total, this move would constitute an 11.37% move for Arbitrum price.
ARB/USDT 4-hour chart
While the bearish outlook makes logical sense, a four-hour candlestick close that flips the $1.14 hurdle into a support floor will open the stage for sidelined buyers to step in. This development will invalidate the bearish thesis for Arbitrum price and allow ARB to scale higher.
In such a case, Arbitrum price could retest the $1.21 resistance level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.