Here's Why Arbitrum Price Is Pumping and What the ARB Chart Is Telling Us

Arbitrum is back in the spotlight after breaking out of a long downtrend. The price is climbing quickly, and traders are taking notice.

Arbitrum is back in the spotlight after breaking out of a long downtrend. The price is climbing quickly, and traders are taking notice.

As the name suggests, Arbitrum is a layer 2 scaling solution for Ethereum, and it often moves in sync with ETH. So with Ethereum price gaining momentum lately, it’s no surprise ARB is starting to follow.

Top analyst World Of Charts pointed out on X that ARB price has broken through several resistance zones and is now up more than 50% since the breakout.

At the time of writing, ARB is trading around $0.4781, showing a 25% gain over the past 24 hours. The trading volume has also jumped by 192%, which showcases strong interest from buyers.

With this kind of momentum and clear technical signals on the chart, many are now watching closely to see if ARB could be heading for that $1 milestone.

ARB Price Breaks Strongly Out of Downtrend

On the 12-hour chart, Arbitrum was moving downward in a channel pattern since late 2023. The price kept making lower peaks and lower valleys, showing that sellers were in control for a long time.

However, this direction has changed, and now buyers are taking over the trend. Early this month, the Arbitrum price broke out above the upper boundary of the channel, which indicates a strong reversal pattern.

This upward move was confirmed by consecutive bullish candles and a rapid increase in buying pressure. The breakout took ARB from around $0.47 to a high of approximately $0.83 in a short timeframe.

This breakout aligns with the projection shared by World Of Charts, who identified the bullish move and noted that the price was advancing toward pre-defined targets.

During its rally, ARB price cleared several important resistance zones. These include the $0.50-$0.53 area, which is located near the top of the descending channel and a higher range around $0.60-$0.65, which acted as resistance in April. These zones are now serving as support.

The first support stands near the $0.63-$0.65 range. A secondary support zone is positioned around $0.58-$0.60. Price holding above these levels may encourage continued bullish movement.

Furthermore, the tweet by World Of Charts provides context to the chart, highlighting the strength of the rally. The analyst stated that ARB had already delivered over 50% in profits while moving toward its next target.

The tweet aligns with the chart showing a 76% surge from breakout lows. At the same time, trading volume surged 192%, confirming strong participation from buyers. These figures underline the intensity of the breakout and indicate that the market is actively engaging with the asset.

If the support near $0.63 holds, ARB could revisit the $0.80-$0.85 area. There is also potential for a retest of $0.90, a zone that aligns with the previous high from March.

A move past these levels could open the door for testing $1, which stands as a key psychological resistance.

If, however, the ARB price falls below $0.63, it could retrace to $0.60 or even revisit the $0.53 area that marked the breakout zone.

The next few trading sessions will likely determine whether ARB can maintain its momentum or enter a consolidation phase. Nonetheless, with such a strong breakout and technical rebound, Arbitrum is certainly one to watch in the coming days.