$ARB 🎀‼️ Head and Shoulders Pattern at Chart Raises Red Flags for ARB! ♨️📛❓

Arbitrum (ARB) is showing a head and shoulders pattern on its chart—one of the most widely recognized bearish reversal signals in technical analysis. This structure formed as ARB rallied to create the left shoulder, surged to a higher peak forming the head, and then failed to retest that high, creating the right shoulder. This progression often indicates that bullish momentum is waning and sellers are stepping in to reclaim control. 🛑⚔️

Volume analysis strengthens the cautionary picture. During the move up to the head, buying volume increased aggressively as traders chased the rally. But as the right shoulder developed, volume steadily declined, revealing weakening conviction among buyers and suggesting that large holders might be distributing into strength. 🐋📊

Technically, ARB is now hovering just above the neckline support—this level is critical. RSI has rolled over from overbought territory and is drifting lower, showing that enthusiasm has started to fade. MACD is flattening out, with early signs of a potential bearish crossover if sellers maintain pressure. ⏳🔻

On-chain data also hints at increased caution. Exchange inflows have ticked higher, indicating some whales are moving tokens out of cold storage and onto exchanges, possibly preparing to sell. If ARB breaks below the neckline on decisive volume, it could confirm the reversal pattern and trigger a wave of stop-loss selling. 📉⚠️

However, if buyers defend this neckline and mount a strong rebound, the pattern could fail, sparking a short squeeze and a sharp recovery. For now, traders should treat this level as a battleground that could define ARB’s next major move. 🎢🔍

In summary, ARB’s head and shoulders formation is a textbook warning that the uptrend may be losing steam. Staying disciplined, managing risk carefully, and watching for confirmation will be essential. This is a pivotal moment in ARB’s trend development. 🌟🛡️