Arbitrum Skyrockets 26% in 24 Hours—Can ARB Smash Through $0.5050?
Arbitrum’s native token ARB just ripped a 26% gain in a single day—fueling speculation it could breach the $0.5050 resistance. But here’s the catch: it’ll need sustained buying pressure and a crypto market that doesn’t pull its usual ’pump-and-dump’ routine.
Key factors to watch: Ethereum’s gas fees (because who doesn’t love paying $50 for a $20 transaction?) and whether traders actually use Arbitrum for more than just leveraged gambling. If the stars align—and let’s be honest, that’s a big ’if’ in crypto—ARB might just defy gravity. Until then, enjoy the volatility ride.
ARB at a crossroads
At the moment, ARB’s rally has been stalled after encountering a critical resistance level at $0.5050 on the chart.
The Fibonacci retracement level indicates that the price range between $0.5050 (resistance) and $0.4429 (support) has historically acted as a consolidation zone for price action.
Source: TradingView
Previously, this support level was breached, causing a sharp price decline earlier in the year. For the rally to continue, the resistance level must be broken. A breakout could signal the start of a new upward phase.
The key question now is whether the price will consolidate, drop lower, or break out to the upside.
What path will ARB take?
Analysis based on current technical indicators suggests that a bullish MOVE may be taken by ARB.
The Parabolic SAR (Stop and Reverse) indicator, which helps identify market direction based on the position of plotted dots, is currently favoring a bullish trend.
Dots above the price indicate a bearish trend, while dots below the price signal strong bullish momentum.
Source: TradingView
The chart indicates that ARB is in a bullish phase, with Parabolic SAR dots below the price, suggesting potential upward movement.
This trend is reinforced by the Average Directional Index (ADX), which is rising.
A higher ADX signals that the current price direction—bullish or bearish—is gaining strength. Since both ARB and ADX are trending upward, a breakout above the resistance level seems increasingly likely.
Liquidity flow is on the high side
Liquidity inflow into the market has remained elevated, potentially contributing to ARB’s ongoing rally.
At the time of writing, ARB recorded a net inflow of $63.9 million. Its 24-hour inflow currently stands at $32.13 million.
Inflow levels this high indicate that more investors are holding ARB than before.
Source: DeFiLlama
At the same time, trading volume for ARB on decentralized exchanges has also remained elevated, further contributing to the asset’s growth.
At press time, trading volume has reached $1.171 billion in the past 24 hours, with the weekly volume now at $4.871 billion, reflecting a 129.25% increase.
If this bullish activity continues, ARB may break through the $0.5050 resistance and extend its upward trend.
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