Arbitrum (ARB) has faced price struggles recently, dipping below the critical $0.50 support level. This price point had previously been a key support zone, dating back to the initial Binance listing. As ARB continues to hover around this level, traders and analysts are left questioning whether the next major support at $0.35 will hold or if further declines are imminent.
Arbitrum was trading at $0.4753 at the time of writing, showing a minor 0.03% drop in the last 24 hours. However, the price action indicates that the token has fluctuated between $0.465 and $0.475, suggesting consolidation around these lower levels. The notable aspect of the current price behavior is the breach of the $0.50 support, a technical barrier.
Currently, the market is testing the $0.50 level for support, but the risk of a breakdown remains high. ARB could potentially move toward the next critical support zone at $0.35 if the support fails. This level is seen as the next line of defense for ARB before the possibility of further declines.
Arbitrum’s market capitalization is currently valued at $2.06 billion, with a circulating supply of 4.34 billion ARB tokens. Despite its sizable market presence, the price remains under pressure. The next key focus for traders will be whether Arbitrum can maintain its position above the $0.50 level or continue to slide towards $0.35.
Arbitrum technical indicators: MACD and RSI
The MACD (Moving Average Convergence Divergence) indicator currently signals bearish momentum. The MACD line is below the signal line, with a negative histogram, suggesting that selling pressure outweighs buying activity.
The MACD’s value is -0.0728, reinforcing the downtrend. However, the proximity of the MACD line to a potential crossover suggests that momentum could shift if it moves above the signal line. This shift could signal a possible reversal, although that remains uncertain in the short term.
Moreover, the RSI is at 31.52, just below 30, as the convention indicates a condition of oversold stock. This means that ARB could be undervalued, and the token might be subject to a price correction. RSI is also above 30. If the RSI goes above 30 on that chart, this could signal a potential bullish move.
