ARB Tests Critical Support as Bulls Eye $0.44 Breakout
ARB, the native token of Arbitrum, a Layer-2 scaling solution for Ethereum, is currently hovering around the critical support zone of $0.40 to $0.42. This area has consistently caught price dips, and a breach could signal a significant shift in market dynamics.
The ARB price is currently testing the $0.44 ceiling, which has repeatedly rejected higher attempts. Despite this, the steady accumulation of higher lows suggests that buyers remain resilient. Every correction in ARB so far has found strong support, indicating robust underlying activity.
The major descending trendline has capped rallies, with $0.55 emerging as the key breakout threshold. If ARB can clear this level, it could spark a more constructive phase for the market. The next hurdle lies at the $0.485 zone, and a daily close above it would confirm this bullish shift.
On-chain data remains positive, with total value locked (TVL) above $3 billion and average yields of 24.49% through incentives that continue to attract capital. If ARB can clear the $0.44 barrier, measured moves towards the $0.461 and $0.478 Fib levels could follow. However, liquidity data signals a potential sweep towards $0.42 before a more sustainable move can occur, with dense liquidation clusters in this area.
In summary, ARB's price action is currently testing critical support and resistance levels. A break above $0.44 and $0.485 could signal a more bullish outlook, while on-chain data remains strong. However, a sweep towards $0.42 is also possible before a more sustainable move occurs.
