ARB is regaining strength after a sharp reversal, participants are near key resistance as rising inflows and volume signal growing bullish momentum.

After weeks of quiet consolidation, Arbitrum is starting to make moves again. The Layer-2 token has climbed nearly 9% in the past 24 hours, reclaiming key support levels and sparking renewed confidence among participants.

Arbitrum Momentum Strengthens After Bullish Reversal

Arbitrum’s price is showing renewed strength, trading near $0.34, up 8.8% in the past 24 hours according to Brave New Coin. Market capitalization now sits close to $1.9 billion, with trading volume crossing $200 million, signaling strong participation from buyers. The structure has shifted bullish following a clean reversal from the $0.31 to $0.32 zone, confirming that demand is returning after weeks of compression.

ARB Arbitrum’s current price is $0.34, up 8.87% in the last 24 hours. Source: Brave New Coin

Technically, ARB has established higher lows on the 4-hour chart while reclaiming short-term moving averages. The immediate resistance sits near $0.35 to $0.36, aligning with previous rejection points. If momentum sustains and volume continues rising, the next major upside target lies around $0.40, which also coincides with a key Fibonacci retracement area.

ARB Price Prediction: Weekly Structure Eyes $1 Retest

Zip’s chart highlights how Arbitrum’s broader market structure continues to hold above its key weekly lows, maintaining a constructive foundation for further upside. The weekly Fib levels place the next significant resistance between $0.95 and $1.00, an area that previously acted as a major pivot during the last market cycle.

ARB maintains a steady uptrend, with technicals hinting at a potential recovery toward the $1 mark. Source: Zip via X

If the recent base near $0.30 remains intact, ARB could gradually build toward that upper band over the next few months. A breakout above $0.40 would likely confirm a mid-term trend reversal, while holding above $0.32 would keep the bullish setup valid. The Fibonacci extension levels at 1.0 and 1.618 suggest that a full recovery wave could eventually extend towards the $0.95 to $1.05 range.

Massive On-Chain Inflows Boost Market Confidence

Arbitrum’s network has witnessed over $28.8 billion in inflows in just the past three months, according to Rand. This surge in capital represents one of the strongest accumulation periods for the ecosystem this year, with a large portion of funds identified as USDC inflows linked to Hyperliquid activity.

Arbitrum records over $28.8 billion in inflows, signaling renewed institutional confidence and strong ecosystem accumulation. Source: Rand via X

Such sustained inflows highlight growing institutional and liquidity provider interest, which often precedes price strength. The rising net inflow trend reinforces a solid on-chain foundation for long-term value growth, further validating Arbitrum’s position as a dominant Layer-2 scaling solution within the Ethereum ecosystem.

Liquidity Clusters Point to Short Squeeze Potential

Jesse Peralta’s liquidation heatmap shows that major short liquidations sit between $0.35 and $0.36, creating a zone of potential upside pressure. With liquidity concentrated just above current price levels, even moderate buying could trigger a squeeze, pushing ARB swiftly into the $0.36 to $0.38 range.

Arbitrum’s liquidation map reveals clustered shorts near $0.36, hinting at a potential squeeze-driven breakout ahead. Source: Jesse Peralta via X

The heatmap also indicates that downside liquidity has thinned considerably, suggesting limited risk of deep retracements in the immediate term. As traders continue to unwind short exposure, the probability of a relief rally remains high, especially if ARB closes above $0.34 on higher timeframes.

On-Chain Activity Confirms Growing Network Utility

Shaurix’s data shows that daily transactions on Arbitrum range between 2.1 million and 4.3 million, confirming that network usage remains consistently high. Such throughput levels put Arbitrum among the most active Layer-2 networks, rivaling even Ethereum mainnet in certain usage metrics. As transactional volumes stay elevated, on-chain fees and validator revenue follow suit, creating a strong fundamental backdrop that supports Arbitrum’s ongoing price momentum.

Arbitrum processes between 2.1M and 4.3M daily transactions, cementing its position as one of the most active Layer-2 networks. Source: Shaurix via X

Final Thoughts: Arbitrum’s Recovery Is Gaining Traction

Arbitrum’s blend of bullish technical recovery and powerful on-chain growth sets a constructive outlook. The combination of increasing inflows, sustained transaction activity, and reduced short exposure provides a strong confluence for continued strength.

As long as ARB holds above $0.32, upside continuation towards $0.36 to $0.40 remains likely. In the broader view, maintaining structural support on higher timeframes could set the stage for a long-term rally towards $1.00, reaffirming ARB price prediction.