Arbitrum (ARB) is struggling to remain permanently above $1 with the recent market decline.
There has been a bullish trend in the crypto market for the last few months. Altcoins, which turned green in September along with BTC’s rise, went through a tough time last week. Many altcoins witnessed sharp decline due to the outflow of money.
The sensational growth experienced by Avalanche, Solana and Chainlink attracted the attention of Arbitrum. Although Arbitrum’s token, ARB, rose to $1.20, it remained below expectations. Additionally, ARB declined by 20 percent, impacted by the recent decline in the crypto market. With the recent decline, ARB is struggling to maintain stability at $1.
Will Arbitrum (ARB) Recover?
Arbitrum (ARB), one of the Layer-2 projects, could not achieve the expected exit. Between October 20 and November 10, ARB rose from $0.77 to $1.20. However, the price of ARB dropped by 20 percent due to the decline in the crypto market. ARB is trying to maintain support at $1.
ARB has been testing $1 for the last two days. Although the sector’s reaction has led to small-scale gains, the negative market outlook makes things difficult. The $1 support for ARB stands out as an area that bulls should defend more strongly.
In case of a possible breakout and drop below $1, ARB price could fall to $0.9860. If this area is lost, the price may drop to $0.90 in a short period of time. In the scenario of a possible decline in ARB, $0.90 is of utmost importance. This support point is seen as an important buy point to stabilize the price again. However, if $0.90 is lost, the $0.8712 and $0.8284 supports will be exposed. High transaction volumes can be seen in these areas.
On the other hand, if ARB starts to hold the $1 support and gains strength from this area, it may attempt an attack to the upside. If ARB starts rising with the strength it gained from $1, it may be able to test $1.15 in the short term. $1.15 stands as an important resistance point which also touches the August price zone. Breaking $1.15 and staying above it will take ARB price to $1.20. Although $1.20 stands as a major resistance point, it can be easily overcome in case of a potential rise. Thus, a new uptrend could begin for ARBs. The most important point for ARB to accelerate the bullish run and reach $2 would be $1.34. If this price exceeds this level from July, there may be a rise. However, intense selling pressure may keep ARB below the $1.34 resistance.