The cryptocurrency market has been facing corrections in recent weeks, in line with the historically bearish trends typically observed in January. This past week, Bitcoin ($BTC ) experienced a significant dip, falling from $102,000 to a low of $91,000 before stabilizing around the $94,000 level. As Bitcoin holds this support, altcoins such as Arbitrum ($ARB ) and Arkham ($ARKM ) are now testing crucial technical levels, potentially setting the stage for a recovery.
Both ARB and ARKM have seen substantial declines of approximately 17% over the past week. However, current technical indicators suggest that these tokens may be poised for a rebound.
Arbitrum (ARB) Analysis
Arbitrum (ARB) has been attempting a recovery following a sharp correction, with the token currently holding above the 200-day moving average (MA) and testing the lower boundary of a descending triangle pattern on the daily chart. The key support zone at $0.73 has remained intact during recent market downturns, showing resilience at this level.
Should ARB confirm a bounce, potential upside targets include resistance levels at $0.850, $0.925, $1.080, and $1.220. Increasing trading volume near the support zone indicates that buyer interest is growing, suggesting that bullish momentum may be gaining strength in the short term.
Arkham (ARKM) Analysis
Similarly, Arkham (ARKM) is testing a critical support zone near the lower boundary of a falling wedge pattern on the daily chart. Historically, the falling wedge is a bullish reversal pattern, and ARKM appears to be stabilizing around the $1.34 mark following a week of declines.
The technical setup is further supported by a potential rebound in buying momentum, as indicated by the Relative Strength Index (RSI), which is recovering from oversold territory. If ARKM confirms a breakout, the price could target key resistance levels at $1.55, $1.75, $1.95, and $2.25, pointing to the potential for a strong recovery.
Outlook: Is a Rebound Likely?
Both Arbitrum (ARB) and Arkham (ARKM) are currently at pivotal technical junctures, with patterns suggesting that upward momentum could be on the horizon. The analysis highlights the significance of the current support levels, which have remained resilient despite broader bearish sentiment in the market. A rebound for both tokens appears plausible, especially given their respective chart patterns, which are showing signs of recovery.
However, the broader market conditions, particularly Bitcoin's performance, remain a key factor. Bitcoin’s ability to maintain support above the $91,000–$94,000 range will play a critical role in determining whether these altcoins can sustain their potential recovery. Any instability in Bitcoin’s price could delay or even invalidate the expected upward trajectories for ARB and ARKM.
