Arbitrum Rises 20% as Harmonic Pattern Signals 18% Upside Potential

The recent upward movement in Arbitrum (ARB) has drawn attention from traders and analysts due to the emergence of a key harmonic pattern on its price chart, which could indicate a potential bullish continuation. This development follows a broader rally in the cryptocurrency market, driven in part by Ethereum (ETH) breaking above the $4,200 level for the first time since 2021. As a result, many altcoins, including ARB, have benefited from the positive momentum [1].

ARB has experienced a notable 20% gain over the past week, reaching approximately $0.4680. More significantly, its price action is forming a Bearish ABCD harmonic pattern on the daily timeframe. Despite the term “bearish,” this pattern is often associated with a bullish CD leg before the price reaches the Potential Reversal Zone (PRZ). The formation began with a strong rally from point A around $0.3237 to point B near $0.5090, followed by a retracement to point C at $0.3702, where buying interest reemerged. The recent rebound has pushed the price back to around $0.4680, signaling the CD leg is currently in motion [1].

According to harmonic projections, the CD leg could extend toward the 1.236 Fibonacci extension of the BC leg, targeting a PRZ near $0.5456. If the price reaches this level, it would represent an approximate 18% upside from current levels. However, traders should remain cautious, as this zone could also act as significant resistance, leading to profit-taking and a potential pause in the upward trend [1].

Bullish momentum remains intact for ARB, with the price maintaining strength above key technical indicators. A sustained move toward $0.5456 would confirm the pattern’s potential and signal further upside. On the downside, support appears to be near the 25-day moving average, currently located at around $0.4315. A breakdown below this level could signal a shift in sentiment and initiate a period of consolidation [1].

This analysis is intended for informational purposes only and should not be considered as investment advice. Investors are encouraged to conduct their own research before making any trading decisions [1].

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[1] Arbitrum (ARB) To Soar Further? Key Harmonic Pattern Signals Potential Upside Move (https://coinmarketcap.com/community/articles/6898ce094aa6a72cbd7c752e/)