Technical analysis in the cryptocurrency market is a critical tool, particularly for futures traders. At the time of writing, Arbitrum (ARB) trades at $1.13 and Optimism (OP) at $2.39. A detailed examination of their charts and key support and resistance levels offers valuable insights.
Arbitrum’s four-hour chart features a rising channel formation, touching both support and resistance lines over the past week, signaling potential trends for futures traders. The EMA 200 level (red line) acting as support during the recent correction phase hints at a bullish scenario for ARB.
Key support levels to watch on the four-hour Arbitrum chart are $1.12, $1.09, and $1.06, respectively. A close below the $1.06 level, intersecting with the formation’s support line, could lead to significant selling pressure for ARB.
Important resistance levels on the Arbitrum chart are at $1.15, $1.18, and $1.22. A four-hour bar closing above the $1.15 level, which has been a recent hurdle, could accelerate ARB’s upward momentum.
Optimism’s four-hour chart also shows a rising channel formation, with the support line intersecting the EMA 200, attracting investors. Despite breaking the resistance line during the December 11th rise, OP faced selling pressure and re-entered the formation structure, encountering a sell-off. Recently, OP has gained upward momentum after breaking through tight trading ranges.
For OP, the most crucial support levels on the four-hour chart are $2.30, $2.19, and $2.07. A close below the significant $2.07 level, which has been pivotal since December 6th, could expose OP to selling pressure.
Key resistance levels for OP to consider are $2.41, $2.50, and $2.55. A four-hour bar closing above the $2.41 level, a notable barrier in recent rallies, would likely boost OP’s price momentum.