The price of Arbitrum (ARB) has been rising since hitting a new all-time low on September 11th.
The increase was contained within a corrective trend. Price action and RSI do not match, making it difficult to determine the direction of the future trend.
Arbitrum price is recovering from its all-time low
ARB price has been falling since April 18, when it hit an all-time high of $1.82. The decline was contained below a descending resistance line.
Most recently, the management caused a cancellation on August 15th (red symbol). This accelerated the decline and led to a new all-time low of $0.74 on September 11th. The downward move also resulted in a breakout from the horizontal support area at $0.95.
While the price of the cryptocurrency has since increased. The trading price is still below the horizontal resistance area at $0.95 and the descending resistance line. The resistances will collapse in early October.
The daily RSI is trending upwards. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and decide whether to accumulate or sell an asset.
Readings above 50 and an uptrend suggest bulls still have the advantage, while readings below 50 suggest the opposite.
On the one hand, the RSI is below 50. On the contrary, it is rising and has broken through a descending resistance line (green line).
As a result, the daily price action and the RSI are mismatched as one is bearish and the other is bullish.
Will Arbitrum Price Reach $0.95?
The short-term time frame of two hours gives a mixed reading. Similar to the daily chart, this is due to conflicting perspectives of price action and RSI.
The price action shows that the entire Arbitrum price increase was contained in an ascending parallel channel from the all-time low. These channels usually contain corrective moves, so an eventual breakout would be the most likely future price scenario.
ARB price reached the resistance line on September 20 and fell slightly. However, trading is still occurring at the top of the channel.
However, the RSI is bullish. The indicator is rising and above 50, both signs of an uptrend.
Therefore, the ARB price prediction will depend on whether there is a channel breakout or channel rejection.
A breakout could result in a 12% increase to $0.95, while a rejection could result in a drop from the channel support line to $0.81. This would correspond to a decrease of 5%.
