Arbitrum Price Prediction 2025: ARB Looks Set for Continued Recovery

Key Takeaways

• The Arbitrum (ARB) layer-2 scaling solution is designed to make working with Ethereum easier.
• ARB dropped 35% after token unlocks doubled the circulating supply in March 2024.
• It has recovered since August, and our price predictions suggest that ARB could reach $2.16 this year.

One of the most highly anticipated crypto projects of recent years was Arbitrum (ARB). This platform is designed to make working with Ethereum (ETH) quicker and cheaper.

Its native token, ARB, launched to some fanfare in 2023, with its price reaching an all-time high of $2.40 in January 2024.

In March, Arbitrum unlocked $2.2 billion worth of ARB, causing a drop of around 35%. The decline continued until a new all-time low of $0.4317 on Aug. 5.

There has been some recovery after that, with ARB launching the Trailblazer funding scheme  in November as the market blossomed following Donald Trump’s re-election as U.S. President.

On Jan. 16, 2025, ARB was $0.765.

Let’s examine our price predictions for Arbitrum on Oct. 4, 2024. We will also examine the ARB price history and discuss what Arbitrum is and does.

Arbitrum Price Prediction 

Here are the ARB price predictions from CCN on Jan. 16, 2025. Price forecasts should be taken cautiously, especially for something as volatile as crypto.

Our Shiba Inu crypto price predictions will use the wave count method to predict its future movement.

We will add and remove 20% from the target price to provide a range of possible outcomes, resulting in minimum and maximum ARB price predictions.

ARB/USDT weekly chart | Credit: Valdrin Tahiri/TradingView The Arbitrum wave count shows a five-wave decline since the all-time high in January. The downward movement ended with a low on Aug. 5.

Since then, the ARB price has increased in an A-B-C corrective structure. If the structure lasts the same duration as the previous decline and waves A:C have the same ratio, ARB will reach a high of $1.66 in March 2025.

Since the trend after the projected high is undetermined, we will use the rate of increase from Arbitrum’s launch to our target to come up with an ARB price prediction for the end of 2025 and 2030.

From launch to March 2025, the ARB price is projected to increase by 30%, for a daily rate of increase of 0.04%.

Projecting this decline to the end of 2025, 2026, and 2030 leads to targets of $1.80, $2.20, and $3, respectively.

Arbitrum Price Prediction 2025

The wave count method and the daily rate of increase give an Arbitrum price prediction range between $1.44 and $2.16 for the end of 2025.

Arbitrum Price Prediction 2026

Using the wave count and the daily rate of increase, we arrive at an Arbitrum price prediction range of between $1.76 and $2.64 for the end of 2026.

Arbitrum Price Prediction 2030

Using the wave count and the daily rate of increase, we arrive at an Arbitrum price prediction range of between $2.40 and $3.60 for the end of 2030.

ARB Price Analysis

The daily time frame chart shows that ARB has bounced and created a double bottom pattern inside the $0.70 horizontal support area. The double bottom is considered a bullish pattern and is combined with a bullish divergence in the daily RSI and MACD (green). 

If the pattern materializes, ARB will break out from the descending resistance trend line and increase toward at least $1.20.

Short-Term ARB Price Prediction

The ARB price prediction for the next 24 hours is bullish. The price will likely reach the descending resistance trend line and break out.

Arbitrum Average True Range (ATR): ARB Volatility

The Average True Range (ATR) measures market volatility by averaging the largest of three values: the current high minus the current low, the absolute value of the current high minus the previous close, and the absolute value of the current low minus the previous close over a period, typically 14 days.

A rising ATR indicates increasing volatility, while a falling ATR indicates decreasing volatility.

On Jan. 16, 2024, ARB’s ATR was 0.0657, a sign of low-to-average volatility.

ARB Relative Strength Index (RSI): Is ARB Overbought or Oversold?

The Relative Strength Index (RSI) is a momentum indicator traders use to determine whether an asset is overbought or oversold. Movements above 70 and below 30 show over and undervaluation, respectively.

Movements above and below the 50 line also indicate if the trend is bullish or bearish.

On Jan. 16, 2025, Arbitrum’s RSI was 46, a sign of a somewhat bearish trend.

Arbitrum Market Cap to TVL Ratio

The Total Value Locked (TVL) to market cap ratio (TVL ratio) measures the valuation of a decentralized finance (DeFi) project by comparing its market capitalization to the total value of assets locked in its smart contracts.

This ratio shows the project’s utilization and links the platform’s health to locked asset value. A ratio above 1.0 indicates overvaluation because the market cap exceeds the value of assets used in the platform.

A ratio below 1.0 indicates undervaluation because the market cap is lower than the value of locked assets.

On Jan. 16, 2025, the Arbitrum TVL ratio was 1.08, suggesting slight overvaluation.

CCN Strength Index

The CCN Strength Index combines an array of advanced market signals to measure the strength of individual cryptocurrencies over the last 30 days.

Every day, it assigns a strength score, ranging from 0 to 100, to the top 500 assets by market capitalization on CoinMarketCap, focusing on both trend direction and the intensity of price movements.

• 0 to 24: Assets exhibit significant weakness, showing signs of sustained downtrend behavior.
• 25 to 35: The price tends to move within stable bounds with minimal volatility.
• 36 to 49: Assets begin a stable uptrend but without strong surges.
• 50 to 59: Consistent growth with moderate price advances, building momentum.
• 60+: Sharp price movements and high demand indicate stronger volatility and trend shifts.

The index dynamically adapts to rapid changes. For example, an asset experiencing a 100% increase within a short timeframe would see a sharp jump in its score to reflect the intensity of the rise.

However, should that asset stabilize at this new price level, the score will gradually taper down and align with the dampened momentum as the movement normalizes. The same principle applies to rapid declines: a sudden drop will spike the score downward, but the score will slowly adjust back up as volatility decreases.

On Jan. 16, 2025, Arbitrum scored 34.4 on the CCN Index, suggesting weak momentum.

Best Days and Months to Buy ARB

We examined the ARB price history and found the lowest prices on certain days, months, quarters, and even weeks in the year, indicating the best times to buy ARB.

Arbitrum Price Performance Comparison

ARB Price History

Let’s take a look at some key dates from the Arbitrum price history . While past performance should never be taken as an indicator of future results, knowing what ARB has done in the past can help give us some much-needed context when making an Arbitrum price prediction.

ARB Market Cap

The market capitalization, or market cap, is the sum of the total number of ARB in circulation multiplied by its price.

On Jan. 16, 2025, the ARB market cap was about $3.2 billion, making it the 45th-largest crypto by that metric.

Who Owns the Most Arbitrum (ARB) Tokens?

On Jan. 16, 2025, a wallet linked to the OKX exchange held more than 8% of Arbitrum’s supply.

Richest ARB Wallet Addresses

As of Oct. 4, 2024, the five wallets with the most ARB tokens  were:

• 0x6cc5f688a315f3dc28a7781717a9a798a59fda7b. This wallet, listed as OKX held 6,467,951 ARB, or 8.17% of the supply.
• 0x59354356ec5d56306791873f567d61ebf11dfbd5. This wallet held  2,710,918 ARB, or 3.42% of the supply.
• 0x5bdf85216ec1e38d6458c870992a69e38e03f7ef. This wallet, listed as Bitget, held 2,299,899 ARB, or 2.9% of the supply.
• 0xce27283c276f4aa7a7e302b24bfea7668e264877. This wallet held 2,158,367 ARB, or 2.73% of the supply.
• 0xf7a5159085722718dc1276de5979df468975ec11. This wallet held 1,956,359 ARB, or 2.47% of the supply.

Arbitrum Supply and Distribution

From the Arbitrum Whitepaper

In its technical documentation or whitepaper , Arbitrum says it aims to make Ethereum work better for developers.

It says: “Arbitrum is a protocol that makes Ethereum transactions faster and cheaper. Developers use Arbitrum to build user-friendly decentralized apps (dApps) to take advantage of the scalability benefits of the Arbitrum Rollup and AnyTrust protocols.”

Arbitrum (ARB) Explained

Although Ethereum is one of crypto’s biggest success stories, it has not been without its problems. One of the major issues that has caused people problems is the system’s slowness.

The September 2022 transition to a Proof-of-Stake consensus mechanism was designed to address that. However, there are still concerns about the system’s slowness compared to other networks.

As a result, the market for Layer-2 scaling solutions, programs that take a transaction off a blockchain, carry it out, and put it back, has not gone away.

Arbitrum , launched last year, is just one of the many Layer-2 scaling solutions. Its native token is ARB, which launched in March 2023.

New York-based software development company Offchain Labs created Arbitrum. Offchain is the brainchild of computer experts Steven Goldfelder, Ed Felten – former President Barack Obama’s deputy CTO – and Harry Kalodner. 

How Arbitrum Works

Arbitrum uses something called optimistic rollups to take things off Ethereum and carry them out on the network. These programs work with smart contracts, computer programs that automatically execute when certain conditions are met, to help validate transactions.

The idea is that doing so helps the platform work quicker, which, in turn, saves its users money. The platform assumes that every transaction is valid and only verifies them if a fraud-proof submission is submitted.

People who hold ARB can vote on proposals regarding the future of the Arbitrum network. Meanwhile, crypto can be bought, sold, and traded on exchanges. 

Because ARB is based on Ethereum, it is a token rather than a coin. You might see references to things like an Arbitrum coin price prediction, but these are very often wrong. 

Is Arbitrum a Good Investment?

It is perhaps a little too soon to tell. Arbitrum is still some way from its March 24 all-time high.

The news about integrating a famous NFT character into Square Enix’s videogame may boost the coin.

As always with crypto, you must do your own research before deciding whether or not to invest in ARB.

Will Arbitrum go up or down?

No one can really tell right now. While the forecasts are, on the whole, positive, remember that crypto price predictions have a well-earned reputation for being wrong. You should also understand that prices can and do go down and up. 

Should I Invest in Arbitrum?

Before you decide whether or not to invest in Arbitrum, you will have to do your own research on ARB and other similar tokens, such as Polygon (POL). Ultimately, though, this is a decision you will have to make for yourself. Just remember never to invest more money than you can afford to lose. 

Technical analysis by Valdrin Tahiri.

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Disclaimer 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.