It hasn’t been a long time since the airdrop, but it has also been affected by the challenging environment of bear markets. The current outlook for Arbitrum, which is at the top in terms of TVL, is concerning. So why have expectations turned negative?
Arbitrum (ARB) Coin Review
The price of Arbitrum (ARB) has been within a corrective formation since June 10, and the possibility of a downward break is increasing day by day. If this happens, it will confirm a southward trend, and in the worst-case scenario, we will see a new yearly low.
The price movement, RSI readings, and wave count indicate a downward trend. Therefore, if a break occurs, sellers may rush to minimize their losses as they will be supported by these factors.
ARB Coin Chart Analysis
On July 16, the ARB price broke out of a $1.25 horizontal range. At that time, it seemed like a breakout, signaling the start of a new upward movement. However, we realized that this was not true as the ARB price soon fell below the region. This indicates that the recent breakout was just a deviation. In addition to the reasons mentioned above, such deviations can trigger downward movements, further supporting the decline.
On July 24, when the ARB price fell below the support line of a rising parallel channel, the downward trend further strengthened. Such channels usually contain corrective movements. Therefore, the break of this channel is another sign that the trend is downward.
In the short term, the six-hour technical analysis is consistent with the downward readings on the daily timeframe. The main reason for this is the wave count, which indicates a completed A-B-C corrective structure. This is evident due to the overlap of waves A and C and the presence of a rising parallel channel. A decisive close below the support line of the channel will confirm the accuracy of the count.
In a possible bearish scenario, price targets of $1.05 and $0.9 can be visited. To reverse the downward readings mentioned above, the ARB Coin price needs to surpass wave C. This would mean the price targeting $1.65 with closes above $1.35.
