(CTN News) – A 30% rise in the arbitrum price is expected to be followed by a pullback.
ARB is likely to experience an 11% correction at the moment in order to sweep the liquidity below $0.981.
In order to invalidate the bearish thesis, a closing candlestick of four hours will reverse the obstacle of $1.14 and flip it into the floor of support.
A recent rally in the arbitrum price seems to have worn out its legs after a recent recovery rally, indicating the possibility of a correction soon. ARB bulls may be able to take a breather during this period of pullback, while short-term investors could book profits at this time.
It is time for Arbitrum price to shed some weight
In the period between June 15 and 21, the arbitrum price rallied 30%, and it reached a local top at $1.174 during that period. There seems to be a break in the bullish momentum that has led to a slow correction that has produced three lower highs since this point in time.
Arbitrum has developed a lower high at $1.138, and as a result, the price of Arbitrum is now poised to slide down a minimum of 8% until it reaches the immediate support level of $1.017.
ARB bears could force the altcoin as low as $0.981 in some cases if the sell-side liquidity was lacking under the equal lows that were formed between June 17 and June 20 in search of sell-side liquidity.
It is also important to note that the Relative Strength Index (RSI), which has been producing lower lows over the course of this downturn, is currently trying to stay above the mean level of 50 as a further indication of the downturn.
As a result of failing to do so, bears will take over the market and increase the tide of short-sellers further adding fuel to the fire.
A bearish resurgence is also evident in the Awesome Oscillator (AO) whose histograms have declined in magnitude and point towards a transition to sub-zero levels.
It would indicate the dominance of bearish momentum if the flip were successful.
As a final point, the Wave Trend indicator also produced a sell signal on June 22 and continues to decline, indicating that it is time for a correction. This move would result in a price movement of 11.37% for Arbitrum in total.
The bearish outlook makes sense, but a four-hour candlestick close that flips the $1.14 hurdle into a support floor could give sidelined buyers a chance to step in.
As a result of this development, the bearish thesis for Arbitrum price will be invalidated and ARB will be able to scale higher.
As a result, Arbitrum’s price could retest the $1.21 resistance level.