ARB is hovering near a crucial support zone, with participants watching closely to see whether it can stabilise or slip towards the next major downside level.
Arbitrum has slipped into a heavy bearish phase, but the $0.20 region is starting to act like an important point. Despite the sharp drop from the $0.50 breakdown zone, the way the price is stabilizing near this demand pocket has caught traders’ attention.
ARB Struggling Below the Key $0.50 Zone
The latest chart shared by ShangoTrades shows that ARB remains under heavy pressure as long as price trades below the $0.50 structural breakdown level. This zone acted as a major multi-month support, and once it failed, ARB entered a persistent lower-low sequence. Price is now pressing into the $0.22 to $0.24 region, which is the next visible liquidity pocket on the weekly chart.
Arbitrum continues to trade under heavy pressure, slipping towards the $0.22–$0.24 liquidity pocket after losing its long-held $0.50 support. Source: ShangoTrades via X
Momentum also remains weak, with each bounce getting sold faster than the last. As long as ARB stays below the original breakdown zone, the structure remains decisively bearish and rallies are likely to face supply.
Short-Term Trend Still Favors Downside
The descending parallel channel highlights how the short-term trend continues to slope lower. Price is respecting both the upper and lower boundaries cleanly, creating consistent rejection zones at the channel’s top near $0.29 and lower supports around $0.22–$0.23.
ARB’s short-term structure remains bearish, with price moving neatly inside a descending channel and edging closer to the $0.20 zone. Source: Crypto Chiefs via X
Even though ARB can have an upward correction but that too is expected to remain firmly inside the channel. If this structure continues, a slide toward the $0.20 handle becomes realistic as shown on Crypto Chiefs’s chart. For now, short-term sentiment stays bearish until price breaks above the channel and reclaims $0.30.
On-Chain Activity Still Favoring Arbitrum
Despite the market weakness, on-chain data tied to Arbitrum’s real-world-asset (RWA) sector continues to trend upward. Robinhood’s tokenization volume, built entirely on Arbitrum, has been rising in a steep, almost parabolic pattern, with both the “assets tokenized” count and tokenized value posting new highs.
RWA ecosystem continues to expand rapidly, with Robinhood’s tokenization metrics hitting new highs despite the broader price weakness. Source: DeFi Warhol via X
These strong on-chain indicators have acted as a stabilizing force for ARB, helping prevent a deeper breakdown. While price remains pressured, the on-chain ecosystem metrics show sustained usage, giving ARB a fundamental backbone even as technicals flash weakness.
ARB Technical Analysis
ARB is trading around $0.22, marking another retest of the lower range after a sharp intraday selloff. The short-term range remains between $0.22 support and $0.25 resistance, with liquidity thinning beneath $0.21. A clean close below $0.22 risks exposing the next lower support at $0.20, aligning with levels flagged earlier.
Arbitrum’s current price is $0.22, down -6.22% in the last 24 hours. Source: Brave New Coin
To regain any bullish momentum, ARB Arbitrum price must reclaim $0.25 first, followed by the major structural threshold at $0.30. Without these, the broader downtrend remains dominant.
Final Thoughts: What Next for ARB?
Arbitrum’s technical structure is still pointing lower, with both high-timeframe and short-timeframe charts leaning bearish. The channel breakdown, sub-$0.50 weakness, and loss of key support zones all suggest that lower levels remain possible if buyers don’t step in soon.
However, on-chain ecosystem growth continues to add resilience beneath the surface. If ARB can stabilise above $0.22 and reclaim $0.25 to $0.30, sentiment could shift quickly. Until then, caution remains the option, and participants will be watching whether the $0.20 region becomes the next inflection point.
