🔍 Technical Analysis of Arbitrum (ARB/USDT) – on the weekly timeframe
📌 Overview:
Current price: $0.4021
This week's candle is green, indicating a slight rebound from a strong support area.
Moving averages used:
MA 25 = 0.5284
MA 99 = 0.9332
Momentum Indicator (Chande Momentum): records 8.46 and indicates the beginning of a slight recovery.
Trading volume is stable with noticeable increases at the lows, which may indicate the entry of institutions or whales.
🧠 Price Behavior and Movements:
✅ 1. Sideways Range and Calm Momentum
The price of ARB has been moving within a wide range between $0.35 and $1.80 for months, after a long drop from the peak. However, in recent weeks, the price has started to form a clear support base around $0.35–$0.40, indicating a potential beginning of a consolidation phase.
✅ 2. Attempts to Return to Averages
In every rebound, the price attempts to reach the 25 moving average (around $0.52) but fails to surpass it, making it an important dynamic resistance. The 99 average (around $0.93) is far and forms strong long-term resistance.
✅ 3. Volume Behavior
It has been observed that trading volume increases at the lows and decreases at the highs, which is a classic behavior of whale accumulation, indicating smart interest at low prices.
📉 Potential Price Pattern:
There are initial signs of a Rounded Bottom formation, which is a positive reversal pattern. These patterns begin with gradual consolidation and then attempt to break resistance at the end of the bottom.
✳️ Confirmation of the pattern is only after a strong weekly close above $0.55 with high trading volume.
🧭 Key Technical Levels:
Strong support area: between $0.35 and $0.40
Initial resistances: $0.52 (25-week average)
Advanced resistance: $0.93 (99-week average)
Danger point: Breaking below $0.33 may lead to a new drop
Upward turning point: Closing above $0.55 may trigger a strong upward wave
📈 Trading Suggestions:
🔹 For the medium-term investor:
The $0.35–$0.42 area is ideal for gradual buying (DCA) with a stop loss below $0.33
🔹 For the short-term speculator:
First target: $0.52
Second target: $0.65
Third target (long-term): $0.90
🔹 For the cautious trader:
Safe entry is after a weekly close above $0.55 with strong momentum.
🟢 Summary:
The ARB coin shows signs of forming a price bottom at important areas, and if it continues to hold the $0.35 support and succeeds in breaking above $0.55, we may witness the beginning of a medium to long-term uptrend.
