Arbitrum (ARB) has been one of the most tumultuous cryptos in recent times, experiencing a staggering 96% drawdown from its 2024 all-time high of $2.42. However, some analysts believe that this decline could be an opportunity for investors to make significant gains.
Crypto Patel, a well-known crypto analyst, has been tracking Arbitrum's chart structure and believes that it is on the verge of a major reversal. According to Patel, ARB has been trading within a descending channel for almost two years, with price currently sitting at the bottom of the structure.
The chart shows heavy drawdowns, with ARB price falling by over 88% and 96% during the decline. However, this compression near the base of the channel could be a sign that volume absorption is taking place, which could lead to a significant rally in price.