ARB has rebounded from extreme lows, holding key support as participants watch for signs of a potential recovery after the market-wide crash.

ARB faced one of its harshest selloffs yet, plunging before rebounding sharply amid market-wide chaos. The flush cleared major liquidations, but strong on-chain growth and technical support now hint that a recovery phase could be taking shape.

Arbitrum’s current price is $0.32, down 20.78% in the last 24 hours. Source: Brave New Coin

Market-Wide Chaos Sends ARB to Flash Lows

Baaniz reported that Arbitrum joined the broader market collapse, plunging nearly 80% in what’s being called one of the harshest single-day selloffs since the COVID and LUNA crashes. Over $20B in total liquidations swept across the market, forcing the price down to roughly $0.10 before a quick rebound.

ARB plunged nearly 80% before rebounding sharply, tapping a key historical demand zone during one of crypto’s most volatile sessions. Source: Baaniz via X

Technically, ARB wicked straight into a historical demand pocket that aligns with one of its historic levels. Such deep flushes often mark exhaustion points when paired with cascading liquidation events. If buyers manage to hold above $0.30, it would suggest that capitulation has already played out, setting the stage for a stronger recovery wave.

Liquidation Clusters Build a Case for ARB Short Squeeze

Crypto analyst Jesse Peralta highlighted nearly 1M in liquidations stacked at $0.48, marking a clear liquidity magnet for price in the near term. The heatmap data from Coinglass shows concentrated stop zones that could easily trigger a rebound if shorts begin covering.

ARB shows dense liquidation clusters near $0.48, signaling a potential short squeeze setup if price reclaims key resistance levels. Source: Jesse Peralta via X

Support sits around $0.28 to $0.30, while resistance remains at $0.46 to $0.50. A breakout above this area could ignite a squeeze towards the $0.58 region. For now, structure suggests one final dip could occur before the move higher plays out, especially if spot demand starts to absorb the remaining short pressure.

Technical Outlook: ARB Upside Still on the Table

ARB Arbitrum’s macro harmonic structure remains intact, despite short-term volatility. The asset continues to trade within a long-standing accumulation range, holding well above its 0.886 retracement at $0.24, a zone that has repeatedly acted as reversal support.

Arbitrum maintains its bullish harmonic structure, with RSI rebounding and upside targets extending toward $1.20–$2.25. Source: EK via X

EK highlights upside targets remain projected towards $1.20 and $2.25 if the current pattern completes. The RSI bounce from the lower boundary adds confluence, showing that momentum is turning after extreme oversold readings. As long as ARB holds above $0.28, the higher-timeframe bullish setup stays valid.

On-Chain Strength Shows Fundamental Growth

Arbitrum is emerging as one of crypto’s most active settlement layers, processing $3.29B in real-world asset (RWA) transfers and nearly $10B in stablecoin volume. This signals that while price has been volatile, network utility continues to expand aggressively.

ARB processed over $3.29B in RWA transfers and $10B in stablecoin volume. Source: BlackBeard via X

Institutional funds, tokenized bonds, and treasuries are actively being deployed on Arbitrum, highlighting that it’s not just a DeFi narrative, but a genuine settlement hub. The growing transaction and liquidity flow base creates a strong on-chain foundation for recovery once sentiment stabilizes.

Final Thoughts: ARB Long-Term vs Short-Term Outlook

Short-term traders are navigating volatility, but the higher-timeframe chart suggests ARB is still in a larger accumulation phase. The repeated defense of the $0.28 to $0.30 region, combined with consistent on-chain growth, paints a constructive picture beyond the immediate turbulence.

If momentum shifts back above $0.50, it would signal that the correction has matured and a longer-term rally phase could be forming. Fundamentally and technically, ARB Arbitrum price remains one of the stronger Layer-2 plays; its long-term structure continues to support an eventual recovery once the broader market stabilizes.