Arbitrum (ARB) is currently down 96.36% from its all-time high (ATH) on Thursday, February 26, making it a prime opportunity for long-term investors.
According to the crypto analyst Crypto Patel, despite this massive drawdown, ARB is sitting at the bottom of a multi-year descending channel within a high-timeframe (HTF) demand block, signaling strong accumulation and potential reversal, a setup for generational entries.
Key technical indicators are pointing to a possible Wyckoff accumulation phase, with seller exhaustion and volume absorption suggesting a major price shift is brewing.
If the price holds above $0.06, the market structure remains intact, and a bullish trend could emerge. A breakout above $0.23 would confirm this reversal.
Also Read: Arbitrum (ARB) Falling Wedge Pattern Signals Potential Breakout Toward $2+
Arbitrum (ARB) Consolidation Shows 49x–74x Upside Potential
Upside targets that could be reached by ARB include $0.49, $1.20, $2.42, and as much as $5.00. These represent potential increases of 49x to 74x from the current price.
The price is currently trading in a demand zone between $0.09 and $0.06. If the price breaks below this zone, the bullish case will be broken. However, as things stand now, the risk-reward is very skewed in the favor of the buyer.
Source: Crypto Patel X Post
The current market environment for ARB is that of patience, rather than that of momentum. The price has reached a critical juncture where smart money is accumulating.
Those who are patient and waiting for a trend reversal could reap massive rewards, provided they are doing so when market sentiment is most uncertain. The time to position is now.
Momentum Indicators Point to Mixed Conditions
According to TradingView, as of Thursday, February 26, the Relative Strength Index (RSI), which is currently 55.00, indicates that the market is neutral and has not shown signs of being overbought or oversold. This means that the Relative Strength Index has shown no signs of buying or selling pressure.
Source: TradingView
However, the Moving Average Convergence Divergence (MACD) indicator reveals a bullish trend in the asset’s price movement.
The MACD line is above the signal line, indicating a positive trend in the asset’s price movement. The histogram bars are also green and above the zero line, indicating an increase in buying activities in the market.
Also Read: Can Arbitrum Bounce? ARB Hits Key Support, Eyes $0.250 Upside