Recently, ARB has faced challenges in sustaining its bullish trend, witnessing a decline in its value. Over the last month, the altcoin has experienced a 14.28% drop, which has persisted over the past week and the last 24 hours as well.
Although ARB might continue to see a downward trend in the short run, there is potential for a recovery in the near future, leading to a resurgence of bullish sentiment and the possibility of higher profits.
Positive Signs Emerge for ARB
A bullish cup and handle pattern has emerged in ARB’s trading dynamics, indicated by the chart’s distinctive pattern. Such formations generally signal an upward trend for the asset, particularly in the short term.
This pattern suggests that ARB could rally to reach $1.5 once the setup matures fully.
However, before the anticipated rally, ARB is likely to experience further downward movement as it searches for a demand zone, ideally between $0.74 and $0.659. Once this level is attained, an upward trajectory can be expected for the asset.
Buy Orders Positioned for ARB
Analysis by CryptoCrypto indicates that the identified demand zone on the chart could propel ARB to higher price levels. According to IOMAP data, this zone corresponds with the “In the Money” area, where 13,200 addresses hold 320,000 ARB, signifying a critical support level.
The IOMAP tool, utilized for pinpointing crucial support and resistance levels, showcases address distribution based on profitability. Within this context, “In the Money” signifies addresses in profit, while “Out of the Money” denotes those at a loss.
As ARB enters this “In the Money” territory, its price is poised to initiate an upward trajectory.
The Bull-Bear ratio, highlighting the comparative number of bullish versus bearish whales, currently displays 39 bullish entities against 49 bearish ones. This indicates that bearish whales are potentially steering ARB downwards towards the demand zone as they await optimal buying opportunities before re-entering the market.
With this bearish sentiment prevailing, ARB’s decline could surpass the 5.06% recorded on the daily timeframe.
Entry of Derivative Traders into the ARB Market
Coinglass data reveals a rising funding rate for ARB, hitting 0.0097% over the last 24 hours and indicating a positive trend.
A positive funding rate suggests that long derivative traders, especially those utilizing leverage, are dominating the market, contributing to price stabilization.
In summary, bullish sentiment surrounds ARB, and its recent minor decline could potentially serve as a corrective phase preceding an upward movement.