Arbitrum (ARB) Primed For 46% Rally If This Happens, Analyst Reveals
One analyst explains that if Arbitrum’s price breaks out of this technical analysis pattern, it could rise by around 46%.
Arbitrum has been trading within a descending triangle lately
in a new postal Over at X, analyst Ali Martinez talks about the descending triangle pattern forming in Arbitrum’s 4-hour price. this”descending triangle” refers to the Technical Analysis (TA) As the name suggests, it looks like a downward-sloping triangle.
The pattern involves two trend lines between which the asset is consolidating: one higher level drawn by connecting the lower highs of price together, and one drawn parallel to the timeline connecting the bottoms. lower level. As with many other TA patterns, the upper line is considered a possible resistance point for the price, while the lower line can act as support.
A breakout of both lines could signal a continuation of the trend in that direction. A breakout of the triangle is naturally a bullish signal, while a break below the triangle may signal a bearish outcome.
Similar to the descending triangle, there is another pattern called the ascending triangleforms when a consolidation occurs in an overall upward direction.
Now, below is a chart shared by analysts showing the descending triangle within which the Arbitrum 4-hour price has been trading over the past few months:
As shown in the chart above, the Arbitrum 4-hour price retested the upper levels of the descending triangle a few days ago, but found reject Because it has plummeted.
Yesterday, the coin had a very brief retest of the drop, but it seems the cryptocurrency has held on to that level as well, as its price has bounced back from it.
However, these levels may not hold for long as ARB is quickly approaching the apex of the triangle. As the range narrows, the chances of a breakout (in either direction) increase.
Currently, Arbitrum is trading in the middle of two levels, so it is uncertain which level it will move into next. Martinez noted that if there is a breakout to the upside, the cryptocurrency could end up rising by around 46%. This number is based on the fact that the height of the triangle relates to that percentage of price movement.
It remains to be seen whether ARB can break out of the descending triangle.
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As of this writing, Arbitrum is trading at around $0.72, up 1% in the past 24 hours.
