"Analysis of ARB Coin: The Most Popular Layer 2 Right Now"🕵️♂️ Let's dive into analyzing and updating our favorite coin, ARB, which is popular among airdrop enthusiasts. Currently, it's at the market bottom, and its price is undervalued, which might present a good entry point.
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Starting from Monday to Wednesday, we'll cover , Monday: Bitcoin and Dominance analysis , Tuesday: Ethereum and ETH/BTC analysis , Wednesday: Gold analysis
These are in addition to our daily analyses.
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🎁 Airdrop Insights:
Before diving into the analysis, let's talk about new airdrops. If you're into this domain, it's no longer just about making transactions with a few wallets and winning over $10,000. It requires active participation in the ecosystem, visiting all DEXs, adding liquidity, and increasing TVL within the chain. These activities can lead you to secondary coins related to projects within the chain, potentially yielding more profit than the entire airdrop itself.
The reason I still believe in Arbitrum's success is that despite the unfair distribution of new airdrops and the fact that many left the chain after the airdrop, Arbitrum continues to lead in TVL rankings.
📅 Weekly Analysis:
In the weekly timeframe, we don't have much data due to its recent listing, but we have significant ATH and key supports ahead.
Despite not experiencing a bull run, many Layer 2s had their bull run in 2023, like OP, LDO, IMX, and Arbitrum, all reaching high peaks. LDO, due to its high market cap and solid project, had lesser corrections.
⏰ Currently, we're forming a green support candle on the most crucial support of this chart at 0.7707. Is this a good buying opportunity? In my opinion, no. It's natural to see a green or profit-taking candle after four consecutive red candles. As a friend of mine says, "I prefer not to catch a falling knife."
⏳ Daily Analysis:
In the daily timeframe, we've experienced a strong downtrend. After losing the 0.9284 support, we've now reached the final support level, and we've seen a suitable candle forming at this support, prompting us to shift our focus to the right side of the chart.
If you're a holder of this coin and the market turns bearish, consider exiting and liquidating if we stabilize below the 0.7847 support, as it's likely to be easily lost.
💰 If we return above the 0.7847 resistance, you can buy back in. This time, you'll hold fewer coins, and it's worth setting a stop loss because losing the 0.7847 support means the beginning of a new downtrend. The entry of RSI into oversold territory at 28.84 confirms this.
If you want to buy, you can do so here with minimal risk and without a stop loss. For instance, allocate 1% of your total capital so that if the coin goes to zero, only 1% of your capital is lost. This is justified because the coin is valuable and undervalued. If you need more certainty, wait for it to range between 0.7847 and 0.9284 and buy after breaking the ceiling.
The Fibonacci retracement levels indicate potential correction levels at 0.9284, 1.0351, and 1.2251, unless a ranging scenario changes the cycle.
🔄 4-Hour Analysis:
In the 4-hour timeframe, we've had a strong downtrend and are currently fluctuating between the 0.8440 and 0.7670 range, which defines our triggers.
Given that this is the final support level, we can use Fibonacci levels to estimate target levels for breaking the 0.7670 support. The levels are 0.7289, 0.6969, and 0.6662, assuming we bounce back from the 0.236 correction level and break the support.
📉 Short Position Strategy:
Our short position trigger is straightforward. As you can see, volume decreased when correcting upwards. Now, after breaking 0.7670, if volume increases, we open our short position.
📈 Long Position Strategy:
the trend is downward. If we range within the box, we can open a long position by breaking 0.8440 riskily and 0.8906 safely. However, I recommend checking ENS and FET charts for long positions.
🔑 Key Support and Resistance Levels:
Supports Levels: 0.7670, 0.6969
Resistances Levels: 0.8906, 1.0847
😊 If you'd like me to analyze a specific coin or currency pair, be sure to comment so that I can allocate the next analysis for you!
⚠️ Also, please remember that I'm just an analyst, and this isn't financial advice . We're here to stay in the market and maximize profits by adhering to risk and capital management principles.