Arbitrum Descending Channel, Can It Go Much Lower?Arbitrum has been moving down since January 2024, more than 10 months. It has been moving down within a perfect descending channel.
This is a young chart so we do not have any long-term or historical support levels. It is hard to pinpoint just how far down it can go.
We know based on the Fibonacci sequence that the next strong support sits around $0.34, that is the 1.236 Fib. retracement level. There is another one, $0.10, at 1.386 but this is really far away.
The chart is bearish and pointing lower. We can know this based on the descending channel, lower highs and lower lows, and, based on the fact that four weeks closing green produced no significant growth. This happened in September.
So four weeks green and no significant growth, no volume, no bullish momentum. This tells us that buyers are not present. There is no one interested in buying at this point.
The chart is now set to move lower and produce a test of the 5-August low which sits around $0.43. Now, the chart points to new lows because of the lower highs but before getting to new lows this level will definitely be challenged, there will be some reaction around it.
This is a wait and see and after the next low we can expect a recovery. There is no significant bear volume either, this means that we are seeing the continuation of the bearish trend.
Ten months going down is a long time. The correction is likely reaching its end.
We will see some more red and the growth... Maximum growth after February 2025 (March 2025) —the period before is the recovery phase— and then maximum speed in the remaining part of 2025.
Patience is key.
Thank you for reading.
Namaste.
