ARB Token Eyes Bullish Reversal Amid Falling Wedge Pattern
Arbitrum’s native ARB token trades at $0.21, down 2% on the day. Market cap stands at $1.2B. Weekly charts reveal a falling wedge pattern, often a precursor to a bullish reversal. Support holds at $0.1767, while resistance lies between $0.32 and $0.33. The RSI sits near 35, hinting at oversold conditions. Volume averages 2.37M ARB daily.
On-chain data are mixed. Daily active users rose 9% to 242,315, yet total value locked fell to $3.4B, signaling capital outflows. The Arbitrum DAO allocated 35M ARB to tokenized U.S. Treasurys, diversifying its treasury and boosting real-world asset exposure.
Traders will watch for a breakout above $0.32 to confirm a trend shift. Sustained trading above $0.29 would reinforce bullish momentum. The ARB token’s next move depends on volume expansion and confirmation signals, making it a cautious opportunity at current levels.
Neutral
While ARB token’s falling wedge pattern suggests a potential bullish reversal, mixed on-chain metrics warrant caution. The wedge has historically preceded rallies when accompanied by rising volume, yet TVL declines underscore capital outflows. DAO’s treasury allocation to tokenized U.S. Treasurys signals long-term stability, but immediate resistance at $0.32–$0.33 could delay a breakout. Similar patterns in past cycles have delivered gains only after sustained volume increases. Therefore, the near-term outlook is balanced, offering a cautious trading opportunity rather than a clear bullish or bearish trend.