Remember Arbitrum? This Analyst Just Predicted That A 7,400% Rally Is Coming

Crypto analyst Crypto Patel has predicted that the Ethereum layer-2 Arbitrum could record a 7,400%, providing a bullish outlook for the altcoin. He also revealed key levels for investors to keep an eye out for as the position for this potential rally. 

Arbitrum Eyes 7,400% Run With Price Down 96% From ATH

In an X post, Crypto Patel predicted that Arbitrum could rally 7,400, with the price currently down 96% from its all-time high (ATH) of $2.40. He noted that ARB got trapped inside a brutal descending channel after its 2024 top, which led to the 96% crash from its ATH. The analyst added that retail investors have gotten trapped in bull traps in every minor bounce before the next leg down. 

Commenting on the current Arbitrum price action, Crypto Patel revealed that the price is sitting above a high-risk, higher-timeframe accumulation zone following the liquidation phase. He added that ARB has shown the first real sign of strength, with price up 57% from its lows. This higher timeframe high-risk accumulation zone is notably between $0.095 and $0.07. 

Source: Chart from Crypto Patel on X

Crypto Patel stated that market participants should be watching for a breakout and retest of the descending trendline. There could also be a liquidity sweep below the dynamic trendline. Meanwhile, the bullish structure remains valid only above the $0.27 reclaim. An invalidation could happen with a 2-week close below $0.065 for Arbitrum.

The analyst also mentioned that descending channels, as in this case, often print multiple false reversals before the real one occurs. Crypto Patel reiterated key levels to watch, including the higher timeframe demand zone, the breakdown zone, and the trend reclaim zone. Meanwhile, targets are $0.27, $0.50, $1.2, $2.5, and $5.