The Arbitrum (ARB) price broke out from a short-term resistance and is in the process of breaking out from a long-term one.

The Arbitrum price has decreased inside a descending parallel channel since March 23. Such channels usually contain corrective structures, meaning an eventual breakout is expected. 

After bouncing at the $1.15 support area and creating a higher low (green icon), the ARB price began an upward movement on April 9. It is in the process of breaking out from the channel. At the same time, the RSI broke out from its descending resistance line and is above 50. 

If the breakout is successful, the ARB token price could increase to the next resistance at $1.50. The area is very close to a new all-time high. 

However, if the price falls below the channel’s resistance line, a drop to $0.80 could follow.

The technical analysis from the short-term two-hour chart shows that the ARB price broke out from a descending resistance line on April 9. This supports the breakout from the longer-term channel and indicates that new highs are expected. 

Currently, the ARB price is approaching the confluence of resistances at $1.27. The 0.5 Fib retracement resistance level and a horizontal resistance area create the resistance.

If ARB successfully moves above it, it will confirm that the trend is bullish. This would likely lead to highs near $1.50. However, if another rejection follows, it will mean that the breakout is not legitimate. In that case, a drop to the $1.15 support could be on the cards.

To conclude, the most likely ARB price forecast is the continuation of the increase toward at least $1.50. A rejection from the $1.27 area will invalidate this bullish projection. In that case, ARB could fall to $1.10.

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The post Arbitrum (ARB) Is Edging Closer to a Bullish Breakout appeared first on BeInCrypto.

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