Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- A bullish defense of $0.87 could signal a rally for buyers.
- Financing rates and long-term price developments were positive.
Arbitrums [ARB] A bullish reversal at $0.87 could expose buyers to a likely 6% gain. The altcoin returned to a key resistance-cum-support at $0.87. The pullback occurred after a price rejection at resistance at $0.93, devaluing the Layer-2 token by 8% at the time of writing.
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But the ARB retracement was an ideal entry point for a long position if BTC does not post more short-term losses.
Is a recovery likely at $0.87?
Source: ARB/USDT on TradingView
The daily bearish order block (OB) below $1 has prevented the altcoin from surpassing the dollar value since late August. A price rejection at the roadblock forced ARB to return to $0.87.
Interestingly, the $0.87 level corresponded to chart liquidity of $0.86 – $0.88 (white) and a bullish OB in H12 of $0.8275 – $0.8675 (cyan). A recovery in the aforementioned confluence area could prompt ARB to retest the overhead hurdle and local supply area at $0.95 (red).
If so, such a move could allow ARB to achieve a 6% upside. A modest gain if traders reach the $0.87 level.
However, a decline below the bullish OB in the H12 year ($0.8275 – $0.8675) will negate the above bullish bias, especially if BTC extends its retracement below $34,000.
Meanwhile, the RSI and CMF declined, indicating buying pressure, and capital inflows declined. However, indicators were still above critical thresholds, underscoring buyers’ lead in the market at the time of writing.
The financing rates were positive
Source: Coinalyse
The positive financing rates further confirmed the influence of buyers at the time of writing. The reading showed positive market sentiment and a bullish bias towards the altcoin. Furthermore, the long-term price trend was positive and indicated that ARB was in an uptrend at the time of writing.
How many Worth 1,10,100 ARBs today?
However, Open Interest (OI) rates have fallen slightly, as evidenced by lower highs in recent hours. It meant that demand for ARB in the derivatives market decreased slightly over the same period.
So, traders should monitor BTC price action for risk mitigation and optimized settings.
