Arbitrum (ARB) Breaks Local Downtrend — Chart Signals 44% Price Upswing May Be Next

Key Takeaways

• ARB completed a W-X-Y-X-Z correction.
• Wave (iv) likely ended at $0.363 support
• Wave (v) targets lie above $0.50

Arbitrum (ARB) is rebounding after a clear corrective structure that appears to have concluded around the $0.25 support level.

The token surged in early April, forming a strong impulsive move, and is now completing a local correction.

A bullish breakout from current levels could signal the beginning of the next upward advancement, targeting new highs. 

However, ARB must confirm this move with a clean breakout above local resistance.

ARB Price Analysis

On the 4-hour chart, ARB 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 led to a sharp five-wave impulse from $0.25 to $0.50, marking what appears to be waves (i) through (iii) of a new larger cycle.

The current decline unfolds 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 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 ARB to the $0.62 zone (0.382 Fib retracement) or higher, depending on the move’s strength.

The broader reversal structure is intact if ARB holds above $0.36.

A breakdown below $0.36 would doubt the bullish thesis and risk a return to $0.30 or lower.

ARB Price Prediction

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, broken out after the correction bottomed.

The 1-hour RSI shows neutral conditions around 50, further supporting the potential for a reversal.

ARB attempted to break out 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 confirm the start of wave (v).

Targets are 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%.

However, a failure to break $0.42 may result in further sideways action before the breakout is confirmed. 

If ARB dips again and breaks below $0.363, the next support level is $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

• Support: $0.363, $0.30, $0.25.
• Resistance: $0.42, $0.48, $0.524, $0.568.
• Bullish Target: $0.57–$0.63 range (wave (v) zone).