Arbitrum could face 20% correction as ARB upside looks capped

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Arbitrum could face 20% correction as ARB upside looks capped
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Arbitrum (ARB) price has breached its consolidation phase that existed for the most part of January, February and March, signaling the start of a potential downtrend after the March second-week crash.

Arbitrum price has flipped a key support zone extending from $1.67 to $1.79 into resistance. A rebound into this zone could be likely before ARB faces a 20% correction to $1.34. On-chain metrics support this potential downward trajectory. Arbitrum price has breached its consolidation phase that existed for the most part of January, February and March, signaling the start of a potentialdowntrend after the March second-week crash.

If sellers are in control, then ARB will most likely face intense rejection that pushes it down to the next key support level at $1.34, which is roughly 20% down from $1.67. The Relative Strength Index and Awesome Oscillator support this downward move as they hover below their respective mean levels of 50 and 0.

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