Market Overview
In the cryptocurrency market, both Bitcoin (BTC) and Ethereum (ETH) are trading in the red today, with ETH experiencing a near 4% decline. However, despite the broader weakness, some notable altcoins are showing signs of strength, including Arbitrum (ARB).
ARB is trading in the green with a modest intraday gain. More importantly, its technical setup is showing signs of a possible bullish reversal. The chart now reveals a key pattern formation that could set the stage for an upside breakout in the coming sessions.
Descending Broadening Wedge Pattern in Play
On the 4-hour chart, ARB has been trading within a descending broadening wedge. This is a bullish reversal pattern that often forms during corrective phases and signals increasing volatility followed by an upward breakout.
During the latest pullback, ARB revisited the lower boundary of the wedge near $0.2344. This level has repeatedly acted as a critical support zone. Buyers stepped in aggressively at this area, triggering a rebound that pushed the token back toward $0.27, placing it close to the wedge’s upper resistance trendline.
This tightening price action near the top boundary indicates rising momentum and growing pressure for a potential breakout.
Future Price Action for ARB
If buyers manage to break ARB above the upper wedge trendline and reclaim the 200-day Moving Average near $0.33, it would signal a confirmed bullish breakout. In that scenario, the next logical technical target lies near $0.3973, which represents approximately a 46% upside from current price levels.
However, if ARB faces rejection at the resistance zone, the token may continue to consolidate within the wedge. In such a case, $0.2534 remains the key short-term support to watch.
For now, ARB’s technical structure looks constructive. With the descending broadening wedge still intact and buyers showing strength at support, the setup suggests that a meaningful breakout attempt could soon unfold, especially if overall market sentiment improves through November.