Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Momentum in the lower time frame was strongly in the bears’ favor. The Fibonacci retracement levels showed that the bulls had some hope of a recovery.
Momentum was firmly in bearish hands and the market structure was also bearish. The Arbitrum [ARB] market seemed poised to take further losses. With Bitcoin [BTC] also in the throes of the sellers, a new wave of selling could flood the crypto market. Still, all hope was not lost for ARB bulls.
How much are 1,10,100 ARBs worth today?
At the end of March, Arbitrum buyers ferociously defended the $1.1 support level. The breakout past $1.42 was encouraging. The sharp plunge in prices over the past few days could be reversed, but traders should also be prepared for a move towards $1.1.
The $1.3-$1.4 gold pocket could revive the previous uptrend
Source: ARB/USDT on TradingView
A series of Fibonacci retracement levels (yellow) were plotted based on ARB’s rise from $1.15 to $1.82 last week. It showed that the 61.8% and 78.6% retracement levels were $1.4 and $1,295 respectively.
The area within these two levels is the bag of gold. If ARB’s lower downtrend were to reverse in the time frame, this would be an ideal zone. The $1.42 resistance level had been significant at the end of March. Hence, the recent breakout past it and the subsequent retracement could be a buying opportunity.
However, the OBV had been steadily falling over the past three days. This showed selling pressure and buyers can wait for the OBV to go up. The RSI also showed a downward trend with a reading of 37. Traders should not give in to panic or FOMO and can wait for a move above $1.5 before buying ARB.
Realistic or not, here is ARB’s market cap in terms of BTC
A declining Open Interest showed speculators sidelined
Source: Coinalyse
Open Interest slid down along with prices. Every downward move for ARB was accompanied by a plunge in OI. This showed that long positions were discouraged and sidelined participants.
While the funding rate was positive, sentiment was not optimistic enough for an early rally. The evidence showed that futures traders and spot buyers were weak, and ARB could take further losses to reach $1.3.
This post Will Arbitrum [ARB] do you see a bullish reaction from the gold bag?
was published first on https://ambcrypto.com/will-arbitrum-arb-see-a-bullish-reaction-from-the-golden-pocket/
