Arbitrum (ARB) gained 5.85% on Saturday, February 14. The token is trading at $0.1173. Traders are trying to break through a major resistance area near $0.12. The trading volume has fallen by 11.28% to $70 million, according to CoinMarketCap.
Source: CoinMarketCap
The price action has put ARB near the upper end of a descending triangle on its daily chart. Analysts are now focusing on whether ARB will be able to close above $0.12, a level that has capped recent advances.
ARB Pressured by Descending Triangle Resistance
CryptoPulse, an analyst, has pointed out that ARB is still being held down by its descending triangle resistance. The analyst noted that if the token fails to close above $0.12, it will be a bearish signal, pushing its price down to $0.107, which is a major support for the coin.
Source: X
In an X post, another analyst, Shark Crypto, has mentioned that ARB has been able to consolidate above $0.1050. According to analysts, if the token is able to hold this major support during a correction, it will be able to find liquidity near $0.1400.
Source: X
Also Read: Arbitrum Sees Institutional RWA Momentum While ARB Attempts Stabilization
Futures Volume Drops as Open Interest Rises
CoinGlass data shows a 17.35% drop in futures volume to $156.03 million on February 14. The Open Interest has, however, risen by 3.79% to 117.43 million. The OI-weighted funding rate is 0.0082%.
Source: CoinGlass
Total liquidations in the last 24 hours stood at $81.37K. Short positions made up $79.02K of the total, while long liquidations stood at $2.35K.
Source: CoinGlass
ARB Trades Below Key EMAs and Tight BB Range
From a technical perspective, ARB is currently trading below key Exponential Moving Averages (EMA). The 20-day exponential moving average is currently at $0.1321. The 50-day exponential moving average is currently at $0.1632.
The 100-day exponential moving average at $0.2051 and the 200-day exponential moving average at $0.2725 are trading well above the current price. Price action is currently trading below all moving averages.
The Bollinger Bands suggest that the price action has compressed volatility. The middle Bollinger Band is currently at $0.1320. The price action is trading in the lower half of the Bollinger Bands. The upper BB is at $0.1752, while the lower Bollinger Band sits at $0.0887.
Source: TradingView
The next move will be determined by the resistance at $0.12 and the support at $0.1050. If the price manages to go through the resistance, it may change the trend in the short term. If the price rejects, it may put downward pressure on the support levels.
Also Read: XRP Gains Institutional Boost: Citi Adoption Could Drive Price Toward $3