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.
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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).
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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