Arbitrum Could Be Turning Bullish

A new trading week has begun, and the cryptocurrency market is presenting enticing opportunities following a strong performance last week.

For traders who missed the chance to invest before Donald Trump's presidential election or for those seeking to diversify their portfolios with a stable yet high-potential asset, Arbitrum may be an appealing option at its current discounted price.

Daily time frame analysis

ARBIUSD - 1 Day Time Frame

On Saturday, ARB broke out of a prolonged correction phase, closing above a critical resistance level and signaling a withdrawal of Buy-Side Liquidity. Typically, such movements call for careful monitoring, as a sudden decline could follow, suggesting that the price increase was merely a liquidity grab.

However, in ARB's case, the circumstances appear different. The price has established a strong support zone with no significant pullbacks, indicating solid bullish momentum.

Arbitrum price target

From a long-term perspective, ARB remains within a Discount zone, offering an attractive entry point with a favorable risk-to-reward ratio. Traders can capitalize on this by setting a Stop Loss order below the internal higher low to minimize potential risk.

Additionally, if the price breaks below the key support level on the daily chart, partially selling the position could help limit losses while still holding a portion for further upside potential.

The convergence of ARB’s breakout, the well-established support zone, and its favorable position within the Discount zone creates a compelling opportunity for investors.

Whether you're focused on building a diversified portfolio or taking advantage of the current bullish momentum, ARB presents a promising chance to achieve substantial gains, potentially nearing a 100% increase.