Arbitrum (ARB) is trading within the descending channel on a daily timeframe

Arbitrum (ARB) is trading within the descending channel on a daily timeframe, and the recent bounces from the support level have attracted the attention of the crypto community.

Arbitrum (ARB) has been moving within a descending channel on the daily timeframe, and the recent bounces from the support level have brought attention from crypto traders. If it manages to break above the resistance at the upper boundary of the channel, it can open the way for ARB to continue its climb to higher levels. This formation is known for attracting traders who anticipate the direction of the increase.

An ascending channel, on the other hand, represents a consistent price level that moves within a channel sloping upwards. On the chart, Arbitrum recently touched the lower boundary of the channel, and it showed that it has support at this level.

This bounce is important as it signals the start of the recovery, especially if the price crosses the upper line of the channel. If this happens, Arbitrum may aim at the reversals at $0.380, $0.470, $0.565, and $0.670, which are significant price levels that can spur more buying pressure.

The chart also features an illustrated volume profile, highlighting key areas where Arbitrum might experience some movements in its price. As such, it is crucial for the bulls to overcome and maintain the price above the resistance zone formed by the channel’s upper trendline.

Image: Ben Armstrong

However, the chart also shows the likely possibility of further decline in case the price does not cross the said resistance line and is rather being turned away at the top end of the channel. If this happens, ARB may remain trading below the channel, continuing its bearish trend further.

Moreover, the Relative Strength Index (RSI), situated at the bottom of the graph, indicates that the market is currently at the center range. RSI is currently at 45, which indicates that the stock is not considered to be excessively overbought or oversold. Nevertheless, if the momentum moves upwards and exceeds the upper boundary once again, it moves the RSI into the bullish territory that might indicate a breakout.

If ARB manages to penetrate the upper border of the descending channel. In that case, it shall push the price towards the previously characteristic levels of resistance and, possibly, even higher. The price chart indicates that there is great potential for the token to rise higher, on the condition that the token will be able to sustain above the support area.

As of now, ARB is trading at $0.2910, showing a 3.38% increase over the past day.