As the cryptocurrency market continues to anticipate future movements, Bitcoin‘s dominance is on the rise, leading investors to shift their focus from altcoin projects to Bitcoin. This shift in investment behavior is particularly noticeable in the context of popular Layer-2 projects like Arbitrum and Optimism, which have been in the spotlight recently.
Arbitrum’s two-hour chart shows a rising channel formation that has failed to break resistance after gaining momentum, subsequently retreating to its support level. The key support levels for Arbitrum are identified at $1.6863, $1.6147, and $1.5271. A close below $1.6863 could disrupt the formation and lead to selling pressure.
On the other hand, important resistance levels for Arbitrum are at $1.7721, $1.8651, and $1.9569. A close above $1.7721 could potentially accelerate the price momentum of ARB tokens.
Optimism’s graph also presents a rising channel formation, which misled investors with a false breakout on December 28th, only to see a decline that turned the support line into resistance. The critical support levels for Optimism are at $3.152, $3.048, and $2.905, with a close below $3.152 likely to result in increased selling pressure.
For Optimism, the resistance levels to watch are $3.287, $3.387, and $3.476. A close above the intersection with the formation support line at $3.476 could signal an uptrend for OP prices.