ARPA price had a great start to the year as the price increased by almost four times. However, most of the gains have been lost in the past couple of weeks as the ARPA coin failed to gain strength above the key psychological level and the $0.10 resistance.
While the ARPA layer 2 is currently having a bounce after tagging its 200 MA, more downside seems likely. After a 22.62% drop last week, ARPA crypto price is up 10% in this week. On Tuesday, the coin is trading at $0.05 after a 2.16% decline.
ARPA is a layer 2 scaling solution with a focus on privacy. In this way, the network aims to become the computational layer for secure and cheaper transactions. Its blockchain is currently in the testnet phase, and the mainnet is set to release before the end of Q2.
Therefore, the positive ARPA price action till May 2023 can be attributed to the anticipation of the mainnet. The ongoing downtrend got intensified after the recent crackdown of the SEC against the top crypto exchanges and altcoins.
Technical analysis of ARPA crypto reveals that the price failed to reclaim the key resistance level of $0.10 despite breaking above it. This key psychological level has been acting as a resistance on the higher timeframe. Only a reclaim of this level can make the ARPA price prediction bullish once again.
Considering the ongoing slump, the bulls need to hold the $0.038 as a break below this level can poten
tially tank the price to $0.025, which is the next major support on its chart. Another factor that must be taken into account is the BTC price action as the biggest cryptocurrency by market cap has flipped bearish on the daily timeframe.
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This post was last modified on Jun 13, 2023, 11:45 BST 11:45