Will ARB 71% Monthly Surge Continue Through December?

• Arbitrum’s rounding bottom signals a bullish reversal, with strong resistance at $1.
• EMA and MACD indicators suggest sustained upward momentum for $ARB.

Arbitrum ($ARB) has been making headlines with its recent price action, trading at $0.899 after a minor decline of 0.70% in intraday movements. Earlier, $ARB hit a six-month high of $0.9521, reflecting its resilience amidst broader market pullbacks. Over the past month, the token has rallied by an impressive 71%, with trading volumes soaring 77% in the last 24 hours.

The $ARB price action currently forms a rounding bottom pattern, also referred to as a saucer bottom, which is a strong indicator of long-term bullish reversals. This pattern suggests a shift in market sentiment from bearish to bullish, with price movements resembling a gradual curve. Investors are now eyeing critical resistance levels at $0.9747 and $1.9006, while key support levels are identified at $0.6558 and $0.4723.

Meanwhile, technically, Arbitrum’s recent rally has surpassed the 200-day EMA and broken through the 23.60% Fibonacci retracement level at $0.86. The bullish momentum gained traction with a bullish engulfing candle on November 5, initiating a 91% surge to date. Furthermore, the EMA indicators have turned favourable, with a potential golden crossover between the 50-day and 200-day EMAs hinting at prolonged bullish strength.

$ARB To Hit $1?

On the MACD front, a steady rally in the MACD and Signal Lines, coupled with increasing bullish histograms, further corroborates $ARB’s uptrend. However, market analysts caution that a potential retest of the $0.86 Fibonacci level might occur before confirming a continued recovery.

Moreover, the current rally aims to challenge the psychological resistance at $1, with an optimistic target at the 78.60% Fibonacci level of $1.8679. If the pattern sustains, market speculations suggest $ARB could eye a 2x rally in December.

As $ARB’s rounding bottom pattern unfolds, investors are advised to remain vigilant, closely monitoring market dynamics and resistance levels. Will this bullish rally propel $ARB into new highs or face resistance ahead? Time will tell.