Arbitrum at a Crossroads: Can Bulls Defend $0.3 or Face a 40% Plunge?

Arbitrum's price teeters on a knife-edge as bulls scramble to hold the $0.3 line—while bears whisper of a 40% freefall. Who blinks first?

The Layer 2 battleground heats up

Trading desks split screens between liquidation maps and meme channels as ARB's fate hangs in the balance. That 'degen vs. institutional' showdown? Happening live on the chart.

Technical tightrope walk

Every Fibonacci retracement level becomes a warzone. MACD histograms flicker like a Vegas slot machine. Meanwhile, crypto Twitter oscillates between 'generational buying opportunity' and 'abandon ship' GIFs.

Wall Street's favorite volatility toy strikes again—because nothing says 'mature asset class' like double-digit daily swings before breakfast.

Source: ARB/USDT on TradingView

Upon examining the weekly chart of ARB, AMBCrypto found that the market structure of Arbitrum has been bearish since March 2024.

The 92.63 million monthly ARB unlock, part of the 3-year linear unlock, saw roughly $27.6 million unlocked on the 16th of June.

These regular unlocks, measuring 0.93% of the max supply, did nothing to ease the bearish pressure.

The $1.19 lower high from May was not breached in November, and a new low was formed in April. This meant the market structure of ARB was bearish on the 1-week chart, the same as it has been for a year.

The RSI showed bearish momentum was prevalent, and the OBV made a new low compared to April, highlighting severe selling pressure.

Do-or-die moment for ARB bulls?

Source: ARB/USDT on TradingView

Alongside the overwhelmingly bearish picture on the weekly chart, the 1-day chart also outlined a bearish structure in play over the past month. The past week saw a line of red candles.

In just eight days, Arbitrum has shed 28%, even though Bitcoin [BTC] continued to trade above the psychological $100k mark.

The OBV underlined the immense selling volume in recent days, forcing the OBV to make a new low.

If the price falls below the 78.6% Fibonacci retracement level at $0.298, it WOULD be likely to descend toward the $0.18 level next.

This was the 123.6% southward extension level. On the way there, it was possible that the $0.265-$0.28 area would act as a demand zone.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion