ARB Hits Key Demand Zone: Time to Enter Long?
• Arbitrum sellers hit their crucial target and locked in gains.
• Bulls have a chance to gain entry at current demand zone.
• Steady accumulation and positive development activity signals bullish behavior.
Arbitrum Ripe for Long Entry
Arbitrum [ARB] sellers recently hit their crucial target and locked in gains, providing bulls with an opportunity to gain entry into the market at the current demand zone. The Relative Strength Index (RSI) retraced and was constricted below the neutral level of 50, suggesting selling pressure in the past two weeks. However, Chaikin Money Flow bounced from negative territory and fluctuated around zero, indicating stagnated capital inflows. Additionally, ARB has hit a key confluence area of $1.06 – $1.12 which could bolster bulls against future bearish pressure should Bitcoin [BTC] drop further from its current levels.
The confluence area of $1.06 – $1.12 is also considered a bullish order block (OB) on the 12-hour chart which aligns with a critical support level seen in May, June and July – making it an ideal long entry position for potential buyers targeting the May high near $1.35 or bearish OB near that price point as well. It is important to monitor Bitcoin’s movements before taking any action as it could have an effect on Arbitrum’s price direction either way – so caution should be exercised when entering this trade strategy regardless of current bullish sentiment surrounding ARB’s demand zone .
Accumulation & Development Activity
Investors are holding onto their tokens as demonstrated by rising 90-day Mean Coin Age, suggesting steady accumulation throughout Q3 2023 – which is a bullish cue for potential buyers looking to enter the market now or soon after cautiously assessing Bitcoin’s performance over this period as well . Additionally, development activity has been positively correlated with ARB’s price movements adding further credence to its overall bullish behavior over this time frame .
Despite all these positives indicators supporting Arbitrum’s long entry position , there is still some risk involved given Bitcoin’s uncertain volatility over this period as it could easily cause ARB prices to plummet if BTC drops further below its range-low of $29k . Therefore , traders should exercise caution when making moves into ARB at this point despite its currently favorable conditions .
Overall , Arbitrum sellers have reached their targeted gains while giving bulls a good opportunity to enter at current demand zones while monitoring Bitcoin’s performance accordingly before doing so . With steady accumulation and positive development activity signaling long term bullish behavior , it appears that now may be an opportune time for investors looking to capitalize on the layer-two token ’s promising outlook going forward .