Arbitrum (ARB) saw a sharp 12% price surge after Robinhood listed the Layer 2 token on its platform, bringing increased liquidity and accessibility. The token jumped from $0.378 to a peak of $0.435—a nearly 15% gain—before settling at a 12% increase. Despite the uptick, ARB remains 65% below its December highs of $1.2, raising the question: Can this rally lead to a sustainable recovery?
Whale Accumulation Signals Strong Interest
On-chain data from Coinglass reveals that nearly $7 million worth of ARB was withdrawn from exchanges this week, with a total of $20 million leaving exchanges in the past three weeks. This negative netflow suggests reduced sell pressure, a bullish signal for ARB’s price outlook.
Moreover, whale activity has intensified. The largest ARB whale cohort (holders of 100 million to 1 billion tokens) has increased its holdings from 1.96 billion to 2.06 billion ARB. This accumulation of 40 million ARB in just a few days indicates strong confidence from institutional players.
However, mid-tier whales (holding 10 million to 100 million ARB) have been offloading their holdings, which could create some resistance to further gains.
Technical Indicators Point to a Potential Upside
ARB’s daily chart exhibits a bullish divergence, as its Relative Strength Index (RSI) is rising despite the token’s price making lower lows. This suggests an impending trend reversal, potentially extending ARB’s recovery.
That said, traders should watch for resistance near $0.50—a crucial level that acted as support in late 2024 before turning into resistance. If ARB can break above this key threshold with strong volume, the rally could gain further traction.
Market Sentiment: A Decisive Factor
While technical and on-chain metrics signal optimism, broader market sentiment remains a crucial factor. If Bitcoin and the wider crypto market turn bearish, ARB’s bullish momentum could weaken.
Also Read: Crypto Market Plunge: Bitcoin Drops Below $87K, Chainlink Faces Key Support Levels
For now, Robinhood’s listing has provided a strong catalyst for ARB, but sustained growth will depend on broader market dynamics and whether bulls can push the price beyond key resistance levels.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
