New $ARB Uptrend Starts as Double Bottom Formation Targets $0.80-1.20

2 mins mins

Key Insights:

Arbitrum’s breakout from consolidation signals a potential uptrend towards $0.80-$1.20 resistance.
Double bottom formation hints at trend reversal, with a target of $0.80 for $ARB.
Watch $0.54 for bullish confirmation; failure below $0.43 may halt upward movement.

Arbitrum ($ARB) price has recently broken out of a six-month consolidation phase, signaling the start of a potential uptrend. The breakout follows a pattern widely recognized by traders as a double bottom formation, which often leads to a trend reversal.

Breakout Signals a New Trend

Arbitrum’s breakout from a long consolidation phase marks a critical moment. Traders and analysts are now closely examining the potential for further price increases.

Based on Michaël van de Poppe, it is very likely that a new uptrend will begin, with the following target zones being $0.95-1.00 and $1.15-1.20. This breakout comes after six months of sideways trading, during which the price was stuck within a defined range.

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With the breakout, $ARB has entered a phase of potential growth. The price reached $0.5379, a 9.79% increase in the past 24 hours, confirming the bullish trend.

Double Bottom Formation Targets

Moreover, according to Emre İşlek, an essential technical pattern has formed in $ARB’s chart, the double bottom formation. This chart pattern is often seen as a reversal signal, and analysts use it to predict price movements.

İşlek mentioned that trend reversal formations typically target a rise equal to the average range. This points to a formation target of $0.80 for $ARB.

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The double bottom pattern, which occurred after the price dropped to around $0.43, suggests that $ARB could continue its upward movement. As predicted by the technical structure, the following resistance levels could be seen at $0.80.

Key Levels to Watch and Market Price Movement

The current price of $ARB is near its 50-week average of $0.54. A weekly close above this level could indicate continued bullish momentum. If $ARB closes above $0.54 and retests this price as support, the uptrend could strengthen. However, if the price falls below $0.43, analysts suggest that the upward move could fail. As of press time, the Arbitrum price was $0.5379, with a 24-hour trading volume of $1.448B. Arbitrum is up 9.79% in the last 24 hours.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.