Possible Falling Wedge with CONFIRMED BreakoutArbitrum (ARB), a Layer 2 scaling solution for Ethereum, is showing bullish signs of breaking out of a potential falling wedge pattern. Technical indicators such as Engineering Robo are currently bullish, with two out of three buy signals being triggered. Additionally, the price has bounced off the 0.618 Fibonacci retracement level at $1.175 multiple times, indicating strong support at this level. This personal Technical Analysis (TA) will provide an in-depth analysis of these technical factors to highlight the potential for an upward trend in the near future.
Falling Wedge Pattern Breakout :
Arbitrium's price has been forming a falling wedge pattern on the 1H timeframe. The falling wedge is a bullish reversal pattern, typically appearing at the end of a downtrend. This pattern consists of two converging trend lines, with the upper trend line sloping downward and the lower trend line also sloping downward but at a more moderate rate.
Recently, Arbitrum's price broke through the upper trend line, signaling a potential breakout and reversal of the downtrend. A breakout from the falling wedge is typically accompanied by an increase in trading volume, which has been observed in this case as well. This development suggests that the market participants are becoming more bullish on Arbitrum, and the price is likely to experience upward momentum.
Engineering Robo's Bullish Signals :
Engineering Robo which is a private technical indicator tool, is currently showing bullish signs for Arbitrum, with two out of three buy signals being triggered. Engineering Robo uses various algorithms to analyze historical price data and generate buy and sell signals based on trend, momentum, and other technical factors.
The presence of two buy signals suggests that the trend is in favor of buyers, and the market could be entering a bullish phase. This further supports the idea of a potential breakout and reversal of the downtrend, as indicated by the falling wedge pattern.
Bouncing off the 0.618 Fibonacci Retracement Level on 1H timeframe
The price of Arbitrum has bounced off the 0.618 Fibonacci retracement level at $1.1765 multiple times, indicating strong support at this level. The 0.618 level, also known as the Golden Ratio, is a significant level in the Fibonacci retracement tool, often acting as a critical support or resistance level.
The repeated bounces off the 0.618 level demonstrate that buyers are stepping in to defend this price point, preventing a further decline. This support, combined with the falling wedge pattern breakout and the bullish signals from Engineering Robo, suggest a high likelihood of a sustained upward trend for Arbitrum in the near future.
Conclusion :
Based on the technical analysis, there is strong evidence that Arbitrum is breaking out of a falling wedge pattern, supported by bullish signals from Engineering Robo and the 0.618 Fibonacci retracement level. As a result, the price is likely to experience upward momentum in the short to medium term. Investors and traders should keep a close eye on these technical factors and adjust their positions accordingly to capitalize on this potential trend reversal.
EXTRA NOTES :
Current position $1000 @ 5x Leverage (Average price $1.1988)
