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Cryptocurrency News Articles
Arbitrum (ARB) Price Prediction: ARB Token Surges After Completing a Corrective Structure
May 20, 2025 at 09:11 pm
Arbitrum (ARB) is rebounding after a clear corrective structure that appears to have concluded around the $0.25 support level.
Arbitrum (ARB) is attempting to breakout from a clear corrective structure that appears to be running its course around the $0.25 support level.
This analysis will examine the technical setup on the 4-hour and 1-hour charts to identify potential trading opportunities as Arbitrum continues its price movements.
Arbitrum (ARB) Price Analysis: Final Wave (V) Could Take ARB to $0.62
On the 4-hour chart, Arbitrum completed a complex W-X-Y-X-Z corrective structure on April 7, bottoming at $0.25 before initiating a bullish reversal.
The recent rally saw a sharp five-wave impulse from $0.25 to $0.50, which appears to be completing what can be viewed as waves (i) through (iii) of a new larger cycle.
The current decline is unfolding as a corrective wave (iv), forming a descending channel and bouncing from $0.36 support.
The Relative Strength Index (RSI) on the 4-hour chart reached extremely overbought conditions at 93 on the wave (iii) peak, confirming the need for a pullback, which has now played out.
The following decline led to its reset, reaching 30% on May 17, offering a base for a new uptrend.
The price has also held the key horizontal support and is turning upward, signaling a possible end to the correction.
If this interpretation holds, the final wave (v) could push Arbitrum to the $0.62 zone (0.382 Fib retracement) or higher, depending on the move’s strength.
The broader reversal structure is intact if Arbitrum manages to stay above $0.36.
A breakdown below $0.36 would put this bullish thesis into doubt and could risk a return to $0.30 or lower.
Arbitrum (ARB) Price Prediction: Final Wave (V) Could Take ARB to $0.62
The lower time frame chart confirms a completed ABC correction within wave (iv), with wave (c) bottoming at $0.363.
The retracement formed a descending channel structure, which was broken out of after the correction bottomed.
The 1-hour RSI shows neutral conditions around 50, further supporting the potential for a reversal.
Arbitrum also attempted to breakout of the descending trendline that capped the correction; for now, it appears it has done so.
However, it still sits below its prior local high of $0.40, which needs to be surpassed to confirm the breakout momentum.
This is why a move above $0.42 would be needed to fully confirm the start of wave (v).
Targets are then set at $0.524 (0.786), $0.568 (1.0), and potentially as high as $0.625 (0.382 Fib retracement).
Wave (v) often equals wave (i) or extends by 1.618, suggesting a measured move that can exceed current levels by 30–50%.
But a failure to break $0.42 may result in further sideways action before the breakout is confirmed.
If Arbitrum dips again and manages to break below $0.363, the next support level is at $0.30 (wave (ii) low), and the pattern would need to be re-evaluated.
Overall, the technical structure favors a bullish continuation toward the $0.55–$0.60 range once breakout conditions are met.
Key Levels to Watch
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