Date: Sun, Jan 12, 2025, 04:08 AM GMT
The cryptocurrency market has been undergoing corrections over the past month, in line with January’s historically bearish trend. This week, Bitcoin (BTC) experienced a sharp dip, dropping from $102K to a low of $91K before stabilizing around the $94K level. As Bitcoin holds this support, altcoins such as Arbitrum (ARB) and Arkham (ARKM) are now testing critical levels, showing potential setups for recovery.
Both ARB and ARKM have faced significant declines of around 17% over the past week, but the current technical patterns suggest that a rebound may be on the horizon.
Arbitrum (ARB)
Arbitrum (ARB) is attempting to recover after a steep correction, according to the analysis by crypto analyst @JohncyCrypto. The token is holding above the 200-day moving average (MA) and is testing the lower boundary of a descending triangle on the daily chart. The support zone at $0.73 has held firm during the recent dip, with price action showing resilience at this level.
If ARB confirms a bounce, the price could climb toward resistance levels at $0.850, $0.925, $1.080, and $1.220. Increasing buyer interest near the support zone, as indicated by trading volume, suggests that momentum may favor the bulls in the near term.
Arkham (ARKM)
Arkham (ARKM) is similarly testing a critical support zone near the lower boundary of a falling wedge pattern on the daily timeframe. Historically, the falling wedge is a bullish reversal pattern, and ARKM’s price is showing signs of stabilizing around $1.34 after a week of declines.
The setup is supported by a potential increase in buying momentum, as reflected in the Relative Strength Index (RSI), which is recovering from oversold territory. If ARKM confirms a breakout, price targets lie at $1.55, $1.75, $1.95, and $2.25, suggesting a strong recovery could follow.
Is a Bounce Back Ahead?
Both Arbitrum (ARB) and Arkham (ARKM) are at critical junctures, with technical setups that point toward the possibility of upward momentum. The analysis by @JohncyCrypto highlights the importance of the current support levels, which are holding despite the broader market’s bearish sentiment. A bounce-back rally for these tokens seems plausible, especially with their respective charts showing signs of recovery.
However, much depends on the broader market conditions, particularly Bitcoin’s performance. Bitcoin’s ability to hold above the $91K–$94K support zone will play a pivotal role in determining whether these altcoins can sustain their recovery. Any instability in Bitcoin’s price action could delay or invalidate the potential upward trajectories for ARB and ARKM.
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