Analyzing Arbitrum Price Trends: Will it Reach $0.95?

Analyzing Arbitrum Price Trends: Will it Reach $0.95?

Crypto News – Arbitrum price has been following a corrective pattern recently, and determining its future trend direction has proven challenging due to the lack of alignment between price action and the Relative Strength Index (RSI).

The journey of Arbitrum price since its all-time high of $1.82 on April 18 has been a descent, restrained by a descending resistance line. Notably, on August 15, this resistance line led to a rejection, accelerating the price drop and resulting in a new all-time low of $0.74 on September 11. This decline also breached the $0.95 horizontal support area.

Although the cryptocurrency‘s price has seen some increase since then, it still remains below the $0.95 horizontal resistance area and the descending resistance line. Interestingly, these resistances are expected to converge at the beginning of October.

Examining the daily RSI, we observe a leaning towards bullish territory. Traders typically utilize the RSI as a momentum indicator to discern overbought or oversold conditions and make decisions regarding asset accumulation or sale. RSI readings above 50 in an upward trend suggest an advantage for the bulls, while readings below 50 indicate the opposite.

Currently, the RSI is below 50; however, it is on the rise and has broken out from a descending resistance line (green line), presenting a bullish signal.

In the short-term, the two-hour timeframe presents a conflicting analysis, mirroring the discord between the daily price action and RSI. The price action demonstrates that the entire rebound of Arbitrum’s price has been confined within an ascending parallel channel since the all-time low. Typically, such channels contain corrective movements, implying that a future breakdown from it is the most probable price scenario. On September 20, the ARB price approached the resistance line but experienced a minor decrease, though it remains within the upper portion of the channel.

Conversely, the RSI paints a bullish picture, indicating an increase and a position above 50, both indicative of a bullish trend.

Therefore, the prediction for ARB price hinges on whether a breakout from the channel or a rejection occurs. A breakout could lead to a 12% surge to $0.95, while a rejection might result in a decline to the channel’s support line at $0.81, amounting to a 5% drop.