Arbitrum (ARB) has shown significant resilience in its price action, bouncing back sharply from its recent lows. With a rounding bottom reversal in play, the cryptocurrency has been gaining upward momentum, bringing ARB closer to critical resistance levels that could trigger an explosive rally. As the price approaches the $1.17 zone, a breakout could pave the way for ARB to test its next major target at $1.86. Let’s dive into the key technical levels and indicators that will likely shape Arbitrum’s next moves.

Bullish Momentum Gathers Steam

Over the past three weeks, ARB has experienced an impressive rally, climbing nearly 100% from its lowest point of $0.4598. The price is currently trading around $0.91, marking a daily gain of 4.87%. Despite Bitcoin’s recent price fluctuations, Arbitrum’s price has remained resilient, signaling a strong bullish reversal. This upward momentum is part of a larger rounding bottom pattern, which suggests the possibility of a sustained recovery in the coming weeks.

Key Resistance at $1.17: A Make-or-Break Moment

The $1.17 resistance level is one of the most important technical hurdles for ARB. This zone aligns with the neckline of the rounding bottom pattern and is supported by the 38.20% Fibonacci retracement level at $1.12. If ARB can break through this resistance, it could trigger a surge toward the next target at $1.86, corresponding to the 78.60% Fibonacci level. The price action could accelerate, pushing ARB into new territory, provided the market sentiment continues to favor bullish momentum.

Currently, ARB faces a key test at $1.17, where sellers could attempt to push the price lower. If the token fails to break this resistance, it may experience a short-term pullback before another attempt at breakout. However, a confirmed breakout above $1.17 would mark the beginning of a new upward phase, setting the stage for the potential $1.86 target.

Support Levels and the Importance of $0.86

While the $1.17 resistance is crucial for ARB’s upside potential, the support levels also play a vital role in maintaining the bullish trend. The primary support for ARB is located at $0.86, which is crucial for keeping the price above key moving averages and maintaining the upward momentum. If ARB drops below this support level, the next line of defense would be the 200-day EMA at $0.75. A dip below these levels would signal a possible reversal, as the price could retest lower support areas at $0.65.

However, as long as ARB stays above the $0.86 support zone, the bullish trend will likely continue, paving the way for further upside potential. Traders should closely monitor price action around this support level for signs of consolidation or additional buying pressure.

Technical Indicators: Strong Bullish Signals

The technical indicators for ARB are showing promising signs of continued bullish momentum:

• EMA (Exponential Moving Average): ARB’s price has broken above the 200-day EMA, and the 50-day and 100-day EMAs have both crossed above, creating a bullish crossover. This pattern indicates that the momentum is shifting in favor of the bulls.
• MACD (Moving Average Convergence Divergence): The MACD remains in a positive zone, with the histogram showing increasing bullish momentum. As the signal line maintains its position above the MACD line, it reinforces the likelihood of further upward movement.

These indicators suggest that ARB is poised for more upward action, but a clear breakout above $1.17 is needed for confirmation. If this occurs, the next phase of the rally could push ARB toward the $1.86 target, validating the bullish reversal pattern.

What Lies Ahead for ARB?

Arbitrum’s potential to reach the $1.86 level hinges on successfully breaking through the $1.17 resistance. A breakout would likely fuel further bullish sentiment, driven by increasing demand and market optimism. The broader crypto market’s recovery would also support ARB’s continued ascent.

Conversely, if ARB fails to sustain the upward momentum and drops below the $0.86 support, it may trigger a retest of the 200-day EMA at $0.75. In such a scenario, the $0.65 level could serve as the next critical support zone, offering a potential entry point for long-term buyers.

Conclusion: Eyes on $1.17 Resistance

Arbitrum is at a crucial crossroads, with the $1.17 resistance level determining the next major move for ARB. If the breakout materializes, ARB could surge to $1.86, propelled by strong technical signals and market dynamics. However, maintaining support at $0.86 will be essential for sustaining the bullish trend.

For long-term investors, this presents an exciting opportunity to watch as Arbitrum continues its recovery phase, with the possibility of new highs ahead. Keep an eye on the key levels mentioned above, and stay tuned for the next phase of ARB’s price action.