Date: Fri, May 16, 2025 | 07:25 AM GMT
The cryptocurrency market has been surging with strength, and Ethereum (ETH) is leading the way. ETH has gained more than 66% in the past month, pushing toward the $2,600 mark — its highest level in months. This momentum is lifting sentiment across the altcoin market, and Arkham (ARKM) is one of the beneficiaries.
ARKM is currently boasting monthly gains of over 56%. However, with its recent pullback, a key technical level is now being retested — opening the door for a potential bounce.
Retesting Inverse Head and Shoulders Breakout
The daily chart for ARKM shows a well-formed inverse head and shoulders pattern — a classic bullish reversal signal. This pattern typically indicates that a downtrend has bottomed out and a new uptrend is on the horizon.
ARKM confirmed the breakout earlier this month when it surged from the right shoulder near $0.48 and broke through the neckline resistance at $0.70. The move was further validated by a cross above the 100-day moving average, propelling the price to a local high of $0.84.
But after that rally, ARKM faced resistance and dropped over 15%, bringing the price back down to the $0.65–$0.70 zone. This same zone, which once acted as resistance, is now being retested as potential support — a critical technical development.
What’s Next for ARKM?
The $0.65–$0.70 range has become a pivotal zone. If buyers step in here and the support holds, ARKM could resume its uptrend. A confirmed bounce from the earlier local high of $0.84 would validate the breakout and activate the inverse head and shoulders target — potentially driving the price to $1, which would represent a 40% upside from current levels.
However, there is downside risk. If ARKM breaks below the neckline zone and closes under it, the bullish setup could fail. That would likely send the token lower, possibly toward the 100-day moving average before any significant recovery.
ARKM’s next move could also be influenced by broader crypto market sentiment. If Ethereum continues to rally and altcoin momentum remains intact, ARKM may well be positioned for a strong rebound from here.
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