Arbitrum’s native token has continued to show signs of weakness as it hibernates bullish cycle with another major reduction this week. A continuous dip could set the market up for a macro bearish phase.
ARB and many other cryptos are slowly signaling a macro bearish phase with the latest daily down surge on the daily chart. Although there’s still hope for a recovery, but things might get worse in the next few weeks if the bulls fail to counter the ongoing move.
Looking back, it has lost almost 80% of its valuation since the price started to drop in December. This loss has led to several breakdowns of key support levels, and as we can see on the daily chart, the market has failed to reclaim the lost key levels.
The current breakdown indicates more incoming drops, and with the look of things, the bulls will likely suffer more losses in the far term. They are currently struggling in the ongoing dip. Failure to defend the $0.2 level might result in a bigger collapse until the market finds a solid ground level. As of now, the bears are fully in control.
Nevertheless, a retracement can be expected when the selling reaches an exhaustion point. Such a retracement should bring a sigh of relief in the market before resuming bearish. Currently, there are no signs of a retracement.
ARB’s Key Level To Watch
The potential support level to watch on the way down is $0.25. A further price drop could slide the market to the $0.2 level and maybe $0.15.
The recently broken $0.3 level is now marked as resistance. An increase above it could bring more recoveries at the $0.343 and $0.4 resistance levels.
Key Resistance Levels: $0.3, $0.343, $0.4
Key Support Levels: $0.25, $0.2, $0.15
- Spot Price: $0.463
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.