Recently, ARB has faced challenges in sustaining its bullish run, with the altcoin starting to show signs of decline on the price charts. In the last month alone, the altcoin has witnessed a 14.28% decrease in value – a trend that has persisted over the past week and even in the last 24 hours.
Although ARB might continue to experience further dips in the near future, there is potential for a recovery in the offing, which could lead to a resurgence in its bullish trajectory, opening up the chance for increased returns.
Positive Pattern Emerges for ARB
Currently, ARB is forming a bullish cup and handle pattern within its trading range, as depicted in the chart with the highlighted lines. This pattern typically indicates an upward price movement for the asset, especially in the short term.
In the case of ARB, this anticipated rally could drive the price to at least the $1.5 mark once the pattern is fully established.
However, before the rally commences, ARB might undergo further declines as it searches for a demand region with the necessary momentum, ranging between $0.74 and $0.659. Once this level is reached, the asset is likely to witness an upward trend.
Purchase Orders Ready for ARB
Analyses by CryptoCrypto suggest that the present demand level on the chart could propel ARB to higher levels. According to the IOMAP data, this demand zone coincides with the profitable “In the Money” sector, where 13,200 addresses hold 320,000 ARB – making it a significant support level.
The IOMAP tool, utilized to pinpoint crucial support and resistance zones, has unveiled the distribution of addresses based on their profitability status. “In the Money” refers to addresses enjoying profits, while “Out of the Money” represents addresses in a loss.
When ARB enters this “In the Money” zone, it is anticipated that the price will initiate an upward trend from that point onwards.
The Bull-Bear ratio, comparing the number of bullish and bearish whales, indicated 39 bulls against 49 bears. This imbalance suggests that bearish whales are likely pushing ARB downwards, steering it towards the demand region in search of favorable prices before re-entering the market.
Given this scenario, ARB’s drop could extend beyond the 5.06% decline recorded within the last 24 hours.
Derivative Traders Making Their Entry
As per Coinglass, ARB’s funding rate has begun to climb, reaching a reading of 0.0097% over the previous 24 hours, positioning it in the positive territory.
A positive funding rate signals that long derivative traders, particularly those utilizing leverage, are dominating the market, aiding in maintaining price stability.
In summary, the sentiment surrounding ARB remains optimistic, and its minor downturn could just be a necessary correction preceding an upward movement.