Market Analyst Predicts Potential Rebound for Arbitrum After TD Sequential Buy Signal

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In a recent analysis, a market analyst identified the formation of a well-regarded Tom Demark (TD) Sequential buy signal in Arbitrum’s weekly chart, pointing to a possible reversal in the trajectory of this digital asset.

Hindering the world of technical analysis, the TD Sequential is a favored indicator for gauging potential pivot points in asset prices. It works through two phases, the first being aptly termed the ‘setup’. This initial phase involves tabulating up to nine successive candles with equivalent polarity. The completion of this series of nine suggests that a price may be on the cusp of a turnaround.

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The indication from the TD Sequential varies depending on the color of these candles. Should a green series appear, the indicator views it as a propitious omen for selling the asset. On the contrary, a red series of candles is considered a prime opportunity to purchase said asset.

The ‘countdown’ signifies the second stage of this phase. As the term implies, the countdown encapsulates thirteen candles, as opposed to the earlier count of nine. The conclusion of this countdown presages another potential zenith or nadir for the price.

The recent chart regarding Arbitrum bears witness to this TD Sequential signal in the weekly price. Specifically, a red series appeared on the chart indicating that Arbitrum has concluded a setup phase which, according to the TD Sequential, implies the likelihood of an upturn in the asset’s price.

Reflecting this buy signal, the analyst believes that the digital asset market might observe a one to four candlestick rebound for Arbitrum. However, the ramifications of this pattern on the coin’s price trajectory in the ensuing days retain an element of uncertainty.

Presenting another facet of this intriguing landscape, the Arbitrum network has seen a considerable shift in transaction activity recently. Recognizing this emerging trend, market intelligence platform, IntoTheBlock, highlighted the increased number of network transactions in a recent post.

Once fluctuating at an average of 1 million in early March, the count of transfers has swiftly ascended past the 2 million mark, casting a promising slant on Arbitrum’s prospects. A significant count of transactions often attests to strong trader interest in an asset. While being a harbinger of greater price volatility, it refrains from predicting the direction of the move.

Price-wise, Arbitrum was recently seen trading around the $1.01 mark, descending by nearly 2% over the previous seven days. Despite the recent setback, keen market observers await the anticipated TD Sequential indicator-triggered rebound, observing how it might transform the future trajectory of this digital asset.