Since April 18, when it reached an all-time high of $1.82, the ARB price has dropped below a descending resistance line.
On June 15, the price initially rebounded from the horizontal support level at $0.90. The rebound, however, was insufficient to cause a breach of the descending resistance line.
The resistance line again rejected the ARB price on August 15. This ultimately resulted in a breach of the $0.90 horizontal support area at the start of September.
ARB reached a new all-time low of $0.77 on September 11. This was 33% less than the item’s listed price of $1.18. At $0.79, Arbitrum is currently trading just above its all-time low.
The daily RSI gives pessimistic signals. Traders use the Relative Strength Index (RSI) as a momentum indicator to determine whether a market is overbought or oversold and whether to buy or sell an asset when evaluating market conditions.
When the RSI remains above 50, the bullish trend indicates that the bears continue to have the upper hand.
In contrast, if the RSI reading declines below 50, it shows potential bearish market conditions. Currently, the RSI is below 50 and falling, both indicative of a bearish trend.
In addition, the RSI failed to create a bullish divergence and instead broke down, further affirming the bearish trend.
Since the price is already at an all-time low, the next closest support level must be determined using an external Fibonacci retracement on the most recent portion of the increase.
Thus, the next closest support area is $0.64, 19% below the current price. Since there are no signs of a bearish reversal, the Arbitrum price will probably eventually attain it.
Despite this bearish ARB price forecast, an abrupt reversal in momentum could cause the price to retest the $0.90 area. This would equate to an increase of 18 percent.
Until the price recovers, the trend cannot be considered favorable.