Arbitrum (ARB) seems to be challenging the appearance of a descending triangle formation following recent gains. Depending on the support provided by investors, ARB could potentially achieve further gains if it surpasses the fundamental resistance level.
Arbitrum Price Outlook
Looking at Arbitrum’s price, it appears close to charting a rise towards $1.21. The likelihood of this happening largely depends on the positions investors take.
If ARB investors make a positive move, recovery in the altcoin could be observed.
Considering the recent declines and volatile price movements, a price rise for ARB could recommence in the coming days. The Market Value to Realized Value (MVRV) Ratio indicates that Arbitrum is currently at a low level.
The MVRV ratio is known to assess investor profit or loss. A 30-day MVRV of -17% on the Arbitrum side suggests losses while potentially indicating an accumulation opportunity.
Historically, ARB price rises have occurred within the -12% to -25% MVRV range, presenting this region as an accumulation opportunity.
Therefore, if ARB holders choose to accumulate, they could benefit from a potential rally in the future.
Moreover, Bitcoin’s price movements could also affect Arbitrum’s price. The undisputed leader Bitcoin is seen to be reclaiming the $65,000 support level.
Considering the correlation rate of 0.91 between Arbitrum and BTC, a movement on the ARB side could be similar to Bitcoin. This would be notable for a potential rise in Arbitrum.
What Will ARB’s Price Be?
Arbitrum’s price appears to have exited the descending triangle formation it has been in for about a month. This downward formation indicated a potential correction. However, preventing a drop below $1 on the ARB side has opened the way for this point to be confirmed as support.
Confirming the mentioned level as support could pave the way for a rise in Arbitrum’s price. Considering these factors, ARB could be set to convert the $1.10 and $1.21 resistance levels into support.
Nevertheless, in the event of a potential decline, Arbitrum’s price could fall below the $0.99 support level and lower levels could emerge.
