Arbitrum Forms Falling Wedge Pattern, Breakout Above Upper Trendline Can Confirm Bullish Trend

Arbitrum has formed a falling wedge pattern on the 4-hour chart, with a breakout above the upper trendline can confirm a bullish trend.

Arbitrum (CRYPTO: ARB) formed a falling wedge pattern on the 4-hour chart. A breakout above the upper trendline can confirm a bullish trend.

ARB was trading at $0.546 at the time of writing. The token has slightly bounced after dropping to a weekly low of $0.53 on the 16th of August amid high selling pressure.

At press time, the Stochastic Relative Strength Index at 24 was close to the oversold level. Such a low Stochastic RSI indicated that ARB was approaching its bottom.

The RSI line made a higher high as well, signaling a potential reversal. It also moved above the signal line, hinting at a weakening uptrend and the possibility for further gains.

What Happened? Falling Wedge And Key Levels To Watch: Arbitrum has established a falling wedge pattern on the four-hour chart. If the price breaks above the upper trendline, it will confirm a bullish trend and test key resistance at $0.59.

However, breaking above this pattern largely depends on buying volumes. Therefore, even if ARB breaks out of the falling wedge, it might fail to sustain the gains if the market remains inactive.

One of the factors that might trigger an active market around ARB and a sustained uptrend is the launch of staking on the network. A temperature check proposal to launch staking on the network, titled “Unlock ARB Utility and Align Governance,” received 91% approval from the community.