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Arbitrum (ARB) Falls 10%, Likely to Retest All-Time Low Amid Bearish Momentum

Published 05 May 2025
Victor Olanrewaju
Authors

Key Takeaways

  • Despite a 28% rebound from April’s all-time low, ARB faces major resistance at $0.36 due to significant unrealized losses.
  • The Money Flow Index on the ARB/USD daily chart has dropped from 73.35 to 58.24, showing waning bullish momentum.
  • ARB’s price trades within a descending triangle, signaling a potential breakdown to $0.25 if support fails.

ARB, the native cryptocurrency of the Ethereum layer-2 scaling solution Arbitrum, has been down 10% in the last seven days. As a result, Arbitrum’s price is trading at $0.31.

This decline highlights the altcoin’s ongoing underperformance throughout 2025. Its last significant rally occurred in January, when the price peaked at $0.92.

Since then, ARB has trended chiefly downward, even reaching an all-time low in April. With bearish momentum still in play, this analysis reveals why ARB could be at risk of revisiting those record lows.

Arbitrum to Experience Further Pushback

Although ARB has recovered 28% from its April all-time low, the In/Out of the Money Around Price (IOMAP) metric suggests the token may face strong resistance, making a sustained recovery difficult.

For context, the IOMAP identifies key support and resistance zones based on the unrealized profit or loss volume. Typically, larger profit clusters suggest strong support, while heavy unrealized losses indicate tough resistance.

According to IntoTheBlock, Arbitrum’s strongest support is at $0.31. However, a major resistance looms at $0.36, where 3,560 addresses collectively bought over 250 million ARB, which is now at a loss.

If ARB attempts to breach this level, it could face significant selling pressure, potentially triggering a notable pullback.

Arbitrum price resistance
ARB In/Out of Money Around Price | Credit: IntoTheBlock

ARB Price Analysis: New Low Coming

From a technical perspective, CCN observed that the Money Flow Index (MFI) reading has turned downward. Earlier, the MFI on the ARB/USD chart climbed to 73.35, indicating increasing buying pressure.

However, as of this writing, that value has decreased to 58.24, suggesting that bulls are no longer in control of Arbitrum’s price action. If this remains true, the altcoin might drop below the horizontal support of the descending triangle on the chart.

As seen below, ARB has been trading within a descending triangle since Jan. 18. With a bearish momentum, it could be challenging for the price to recover in the short term.

In addition, the Relative Strength Index (RSI) has dropped below the 50.00 signal line, which implies bearish momentum around the cryptocurrency.

If this trend continues, ARB’s price could drop below the underlying support and hit $0.25, marking a new all-time low.

Meanwhile, if buying pressure increases, this trend might change. Arbitrum’s price might break above the resistance at $0.35 in that case.

ARB price action
ARB/USD Daily Chart | Credit: TradingView

Should that be the case, the altcoin’s market value might surge to $0.48 at the 0.236 Fibonacci level. If the broader market condition improves, this recovery could be stronger.

Arbitrum’s price might rally to $0.62 if that were to happen.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju

Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.

With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.

He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.

In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.

At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.

He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.

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