The latest developments in Arbitrium [ARB] have been quite interesting, as the asset has experienced both ups and downs. On the one hand, ARB saw a significant rally of over 45% on 13 April, but later entered into a consolidation phase with a price range of $1.58 – $1.80. However, things took a bearish turn for ARB as Bitcoin [BTC] dropped sharply from the $30k price range, causing a bearish breakout. Despite this setback, ARB managed to temporarily stabilize near the dynamic 50-EMA (Exponential Moving Average).
Adding to the complexity, there was a gradually increasing RSI divergence observed on the four-hour chart for ARB. This divergence may indicate potential trend reversal or continuation. Moreover, there was significant whale activity on 19 April, which raises the question of whether it could influence a recovery for ARB.
In addition, ARB recently achieved a major milestone by clocking a 5 million user base after launching its native token just a month ago. This milestone indicates increased network traction for ARB, but it also raises questions about the asset’s short and mid-term prospects.
Overall, the current state of ARB is a mix of bullish and bearish signals, and it remains to be seen how the asset will perform in the near future. Investors should keep a close eye on the market trends and developments to make informed decisions.
Will the bulls find a footing?
Source: ARB/USDT on TradingView
ARB witnessed a price dump after hitting the channel’s upper boundary of $1.798. The downtrend inflicted a bearish breakout but steadied near the 50-EMA of $1.536. At the time of writing, the stochastic RSI hit the oversold territory, meaning sellers may need a break soon.
If that’s the case, ARB could rebound and move back to its channel. As such, buying at the current level (above $1.57) could offer a good risk ratio, especially if ARB rallies towards the channel’s mid-point of $1.70 or $1.798 and BTC reclaims the $30k price range. Buyers could wait for a local double bottom at the channel’s lower level or pullback retest before making moves.
However, a close below 50-EMA and $1.4905 will invalidate the above thesis. Such a downswing could sink ARB to $1.4265 or $1.3593. These levels can act as shorting selling targets in such a downtrend scenario.
Meanwhile, there was increasing RSI divergence with price action, which could play in favor of sellers. In addition, the ADX retreated, suggesting further retracement or likely consolidation.
ARB saw significant whale activity
Source: Santiment
The sharp drop was followed by a significant whale activity, with 12 whale transactions worth over $1 million at the time of writing. In addition, the development activity has improved tremendously in the past few days, which could boost investors’ confidence in the token.
However, the sentiment remained eerily negative despite recent improvements. As such, investors should track BTC’s price action for better trade set-ups.
