Arbitrum attempts recovery, will short-sellers run out of opportunities

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Arbitrum [ARB] has enjoyed massive traction after several exchanges like Binance listed it. At press time, it was the top trending token on CoinMarketCap, trading at $1.393.

The Arbitrum ecosystem’s native token has been trading in the red but saw a significant recovery after hitting $1.1 around 28 and 29 March. 

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At press time, Arbitrum blockchain was ranked fourth based on TVL (total value locked) of $2.46B, according to the CoinMarketCap chain ranking.

Its native token’s price action oscillated within an ascending channel as bulls strived to sustain the recovery. But is the recovery sustainable? 

ARB/USDT on TradingView

At press time, the price action on the 3-hour chart was firmly below the channel’s lower range, oscillating between the lower boundary and the channel’s mid-level. As such, ARB could rebound after hitting the channel’s boundary at $1.367 and aim for the mid-level of $1.439. 

A close above the mid-level could push ARB to the channel’s upper boundary, but bulls must clear the $1.49 hurdle. Such an upswing could push ARB to the $1.5 zone in the short term.

A breach below the channel would invalidate the above bullish thesis. A pullback retest to the breached lower boundary of $1.367 and a confirmed downtrend could attract more sell pressure. Such a move could sink ARB towards key supports at $1.32, $1.30, and $1.2. 

The RSI (Relative Strength Index) value at press time was 65 – a bullish signal. However, it has exhibited a downtick near the overbought zone, highlighting a potential price