Key Takeaways
Arbitrum has had a rough start to 2025, falling 47% year-to-date and reaching a new all-time low price on March 11.
Afterward, a gradual recovery commenced, creating the first higher low in months and breaking out from a descending resistance trend line.
Even though ARB still trades close to its breakout level, maintaining its bullish structure can lead to a more significant upward movement in April.
New ARB All-Time Low
The Arbitrum price has fallen under a descending resistance trend line since its all-time high of $2.42 in January 2024.
The downtrend has continued for 427 days, leading to a new all-time low price of $0.29 on March 11.
The ARB price has bounced since but still trades below the $0.50 horizontal area. This was the final support area before the price fell to a new all-time low and will likely provide resistance.
Technical indicators show preliminary bullish reversal signs but do not confirm this possibility.
The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have generated bullish divergences (orange).
However, they have not confirmed them yet, and a sustained ARB price decrease can invalidate the divergences.
As a result, the weekly time frame does not confirm the direction of Arbitrum’s trend.
Arbitrum’s Relief Rally
The daily time frame suggests the long-term trend is bearish, though a significant relief rally is likely.
Arbitrum’s wave count shows a completed five-wave downward movement (red) since the most recent high of $1.23 on Dec. 6.
If the count is accurate, the ARB price has started an A-B-C corrective structure (green) in response to the decline.
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The price action and technical indicators increase the likelihood that this is the correct count.
Arbitrum’s price broke out from a descending resistance trend line after the RSI and MACD generated bullish divergences.
Both indicators trend upward, confirming that Arbitrum has started a short-term upward movement.
Since the move is in its early stages of development, it is unclear if Arbitrum will increase to the minor resistance of $0.50 or the primary one at $0.66.
Relief Rally Toward $0.50
ARB’s price has fallen considerably year-to-date, reaching a new all-time low on March 11.
Arbitrum started a relief rally afterward and broke out from a critical diagonal resistance.
The rally will likely continue toward $0.50 and possibly even reach $0.66.
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.
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