Arbitrum (ARB) Primed For 46% Rally If This Happens, Analyst Reveals
2025-01-22
Category: None

An analyst has explained how Arbitrum could see an upswing of around 46% if its price breaks out of this technical analysis pattern.
Arbitrum Has Been Trading Inside A Descending Triangle Recently
In a new post on X, analyst Ali Martinez has talked about a Descending Triangle pattern forming in the 4-hour price of Arbitrum. The “Descending Triangle” refers to a formation from technical analysis (TA) that, as its name suggests, looks like a triangle slopped downwards.
The pattern involves two trendlines between which the asset consolidates: an upper level drawn by connecting together lower highs in the price and a lower one parallel to the time-axis that joins bottoms. Like in many other TA patterns, the upper line is considered to be a point of probable resistance for the price, while the lower one can act as support.
Breaks out of either of these lines can imply a continuation of trend in that direction. An escape above the triangle is naturally a bullish signal, while a drop under it can foreshadow a bearish outcome.
Similar to the Descending Triangle, there is also another pattern called the Ascending Triangle, which forms when the consolidation occurs towards an overall upside.
Now, here is the chart shared by the analyst that shows the Descending Triangle that the 4-hour price of Arbitrum has been trading inside during the last couple of months:
As displayed in the above graph, the Arbitrum 4-hour price retested the upper level of the Descending Triangle a few days ago, but it found rejection as it has since plunged down.
Yesterday, the coin saw a very brief retest of the lower line, but it appears this level is also holding for the cryptocurrency as its price has found a rebound from it.
It’s likely that these levels won’t hold for long, however, as ARB is fast approaching the apex of the triangle. As the range gets narrower, the chances of a breakout (in either direction) become higher.
At present, Arbitrum is trading right in the middle of the two levels, so it’s uncertain which one it would be traveling to next. Martinez notes that if the breakout happens towards the upside, then the cryptocurrency could end up enjoying a surge of around 46%. This figure is based on the fact that the height of the triangle involves a price swing of this percentage.
It only remains to be seen whether ARB would be able to find a break above the Descending Triangle or not.
ARB Price
At the time of writing, Arbitrum is trading around $0.72, up 1% over the last 24 hours.