Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ARB has hit a demand zone of interest to bulls.
- Holders tighten hold on their recent accumulations.
The crypto market has been choppy in the past few days, and short-sellers exploited it to their vantage. Arbitrum [ARB] was a seller’s paradise over the same period. The layer-2 token’s price rejection at May highs around $1.35 saw the price drop to a critical demand zone and offered >10% gains to short-sellers in two weeks.
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In the meantime, Bitcoin [BTC] suddenly dropped from >$30k to below the previous range-low of $29.5k and could embolden bears for a while unless it reverses.
Will bulls defend the demand zone?
The Relative Strength Index retraced and was constricted below the neutral level of 50. It underscores the selling pressure in the past two weeks.
But the Chaikin Money Flow bounced from the negative territory and fluctuated around zero, denoting stagnated capital inflows. Collectively, the indicators reinforce limited buying pressure and demand.
Nevertheless, ARB hit a key confluence area of $1.06 – $1.12 (cyan), which could bolster bulls. The area is a bullish order block (OB) on the 12-hour chart and aligns with a critical support level in May, June and July. It could be a solid bullish zone for a long entry position, targeting the May high and bearish OB near $1.35.
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Author: Benjamin Njiri
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