ARM extends losses as sellers dominate short-term trend

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Arm drops 9.95% today to $205.97

Highlights

ARM/USD trades below short-, medium-, and long-term moving averages, indicating sustained downside momentum across all timeframes.
Price posts a sharp daily drop of 9.95% to $205.97 after a 22.45 gap down at the open, with strong intraday selling pressure and volatility.
Technical indicators support a bearish outlook with projected trading between $188.95 and $222.99 and a 77% probability of further downside.

Technical breakdown deepens as sellers dominate below major resistances

On the technical front, ARM is trading beneath the MA-20 at $221.38 and MA-50 at $219.66 on the hourly chart, along with the MA-200 at $228.93 on the daily. The Ichimoku Kijun at $217.84 acts as immediate resistance. Momentum indicators reinforce the negative outlook: MACD and ADX are both flashing sell signals, RSI is at 34.06 indicating weakness, CCI remains in the sell zone, and Bull/Bear Power shows oversold levels. Stoch RSI and the Awesome Oscillator are currently neutral, creating some divergence versus the predominant intraday selling pressure.

High risk of further losses as support remains vulnerable

In the short term, ARM is expected to trade between support at $188.95 and resistance at $222.99 during the upcoming sessions. There is a 77% probability that the price will extend its decline, while the likelihood of a rebound stands at 23%. The baseline forecast envisions consolidation within this volatility band, with a bullish shift requiring a breakout above $217.84. A deeper bearish move may develop if support at $188.95 fails.

Viktoras Karapetjanc, expert at Traders Union, notes that Arm Holdings plc is experiencing pronounced downside momentum as it trades below major moving averages and technical barriers. He sees reinforcement of this bearish sentiment in momentum oscillators and the lack of positive news flow. Nonetheless, he maintains a moderately bullish outlook considering broader fundamentals and is monitoring for a possible reversal above $217.84. Karapetjanc says: "While the technical setup remains negative, I believe that underlying demand and sector trends could support a rebound if ARM breaks above resistance."

Earlier, analysts noted that Arm was exhibiting broad-based downside momentum and heightened volatility, with technical indicators pointing to a deteriorating trend. The current analysis reinforces this bearish outlook, highlighting $188.95 as the pivotal support level to monitor for any shift in directional risk.

Source of Data: ARM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.