Arbitrum (ARB) price is testing critical support at $0.40 after losing momentum above $0.50, with bearish pressure raising the risk of deeper declines despite strong fundamentals.

ARB has come under pressure after losing momentum above $0.50, with the token sliding to around $0.42. Short-term resilience has faded, leaving the market watching closely to see if ARB can hold $0.40 support or risk a deeper decline.

Over the past week, ARB has shed more than 15% as selling accelerated, pushing the price back toward its September lows.

Arbitrum’s current price is $0.42, up 1.08% in the last 24 hours. Source: Brave New Coin

Key Technical Levels in Focus

Charts show that ARB has shifted from short-term strength to weakness, with support at $0.40 emerging as the next battleground. A failure here would likely expose $0.35 and even $0.30 as deeper downside targets. For now, the short-term trend remains under bearish control after multiple rejections from $0.50 to $0.52.

Arbitrum faces critical pressure at $0.40 support, with Elliott Wave signals hinting at potential new lows ahead. Source: Analyst V via X

Analyst V highlighted that Arbitrum’s current pattern resembles a three-wave corrective structure under Elliott Wave theory. If this view holds, then a new low cannot be ruled out in the medium term, though truncation possibilities remain. Such signals explain why sentiment is cautious and why $0.40 has become so critical for the ARB price prediction.

ARB Indicators Lean Bearish for Now

The Donchian Channels on the weekly chart show ARB slipping back below its median line, a signal that bearish pressure is once again dominant. Price is now trading around $0.43, with the channel midline flipping into resistance near $0.45. As long as ARB stays under this level, sellers retain control, and volatility inside the channel suggests more downside testing could come.

ARB trades below the Donchian median line, with downside targets eyed between $0.35 and $0.25. Source: Jesse Peralta via X

Analyst Jesse Peralta noted that a move into the $0.40 to $0.35 region looks likely, with the Donchian lower band pointing closer to $0.30 to $0.25 as extended downside targets. This aligns with the recent rejection near $0.50 and confirms that until buyers reclaim the median band, the broader structure leans toward weakness..

Fundamentals Remain Strong Despite Price Correction

While technicals flash red, Arbitrum’s fundamentals continue to look solid. The network’s stablecoin supply has surged past $9.12 billion, reinforcing its role as a leading Ethereum L2. This growing liquidity base provides critical support for long-term adoption and scaling.

Arbitrum’s stablecoin supply has climbed above $9.12B, underscoring strong fundamentals despite bearish price action. Source: Lennart Snyder via X

As Lennart Snyder emphasized, Ethereum’s institutional growth depends on scaling engines like Arbitrum. Such inflows and adoption trends often act as buffers during volatile periods, helping explain why ARB remains attractive to long-term holders despite short-term market stress.

Can ARB Stage a Post-Correction Rally?

Looking further ahead, some traders expect the correction to reset conditions before a larger bullish leg. Niko’s analysis suggests that ARB Arbitrum price testing could reach $0.28 to $0.30 as a final shakeout before establishing a rounded base for recovery.

ARB could dip to $0.28–$0.30 before staging a rebound toward $0.80 in a medium-term recovery setup. Source: Niko via X

In that scenario, the upside target sits much higher, with projections extending towards $0.80 over the medium term. This reflects a potential bullish reversal once oversold levels align with renewed demand, turning the current weakness into an accumulation opportunity.

Final Thoughts: ARB Price Prediction

ARB has slipped from its $0.50 highs into a vulnerable range, now consolidating around $0.42. Technical indicators lean bearish in the short term, with risk of further downside if $0.40 fails to hold.

At the same time, fundamentals remain strong, with stablecoin flows and Ethereum scaling adoption supporting the long-term outlook. This dual narrative explains why traders remain divided, cautious in the immediate term, but optimistic for recovery once conditions reset.

For now, the ARB price prediction balances on the $0.40 level. Holding it could allow buyers to regroup, while losing it risks exposing deeper supports.