Arbitrum (ARB) has reclaimed a major resistance level, and it has been holding above this level for some time now on the daily chart. When the broader market picture is put into context, ARB could be setting itself up for another league up.
Crypto market expert Sjuul mentioned that ARB has reclaimed the support level $0.09 after more than two weeks. There are instances where the price spikes and the token rises above the resistance level momentarily. However, ARB has not been one of the tokens driven purely by hype or short-term speculation. Instead of experiencing a brief rally followed by a sharp correction, the token has managed to hold above its breakout resistance level for an extended period.
This suggests that buyers have continued to defend the level, turning former resistance into new support. In the crypto market, where many breakout attempts quickly fail as traders take profits, maintaining price above a key resistance level is a sign of sustained demand and stronger market conviction.
It indicates that the rally is being supported by continued buying pressure rather than temporary excitement, increasing the likelihood that the uptrend could extend if momentum remains intact.
ARB forms the bullish double bottom pattern
On a higher time frame (weekly chart), ARB seems to be making the double bottom pattern, a classic bullish reversal formation that often signals the end of a prolonged downtrend. The pattern develops when the price falls to a support level, rebounds, and then declines again to roughly the same support before finding buyers once more. The inability of sellers to push the price below the previous low suggests that bearish momentum is weakening while demand at that support level is strengthening.
The neckline is the resistance level formed by the highest point between the two bottoms. It acts as the final barrier that buyers must overcome to confirm the pattern. A double bottom is not considered complete until the price breaks and closes above the neckline, as this confirms that buyers have regained control and that the previous downtrend has likely reversed.
ARB is just now forming the second bottom, and once it has established its grounds above this level, it will then rise towards $0.14, where the neckline is. Once it hits this level, the bulls will further take it to $0.20.
