Arbitrum’s ARB token is approaching a key support zone on the daily chart after a series of lower closes, signaling that bearish pressure still dominates the broader structure. Recent price action shows that each recovery attempt has been met with renewed selling, suggesting that the market remains in a corrective phase rather than the start of a sustained uptrend.
The trend continues to lean negative, with the price trading below both short-term and medium-term exponential moving averages. This alignment reflects a market where momentum favors the downside, as rallies struggle to hold and are quickly absorbed by sellers. Until the price can reclaim these dynamic resistance levels, the broader structure is likely to remain under pressure.
Momentum indicators, however, are beginning to show subtle signs of stabilization. The MACD histogram has started to print mild positive bars, hinting that bearish momentum may be slowing. While this does not confirm a reversal, it often signals a transition phase where the market may consolidate or attempt a short-term rebound.
At the same time, the Relative Strength Index remains in oversold territory, suggesting that selling pressure has been intense and may be nearing exhaustion. Oversold conditions often precede relief rallies, particularly when they coincide with major support levels. Still, such signals must be treated cautiously, as assets can remain oversold for extended periods during strong downtrends.
The immediate support around $0.1077 now represents a crucial level for bulls to defend. Holding this zone could provide the foundation for a short-term bounce. On the upside, the first meaningful resistance sits near $0.1205, which must be reclaimed to signal any shift in short-term sentiment. A sustained move above this barrier could open the path toward higher resistance zones around $0.1971 and $0.2206, though each level is likely to attract selling interest.
Order book data shows significant bid walls well below the current price, particularly around the $0.0816, $0.0417, and $0.0403 regions. These areas could act as deeper demand zones if the downtrend accelerates, but their distance from current levels highlights the potential for sharp drawdowns if support fails. On the upside, notable ask walls around $0.1700, $0.2200, and $0.2300 indicate that any recovery will likely face heavy supply.
For traders, the structure presents two clear scenarios. A bullish setup would depend on the price holding above the $0.1077 support and reclaiming the $0.1205 resistance, which could indicate that sellers are losing control. Conversely, a break below support would reinforce the bearish trend and may present short opportunities, particularly on retests of the broken level.
Overall, the technical outlook remains cautiously bearish, though oversold conditions suggest the possibility of a short-term bounce if buyers step in at key levels.
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