ARB holds near support at $0.1224 as sellers dominate the short-term range: weekly report

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Arbitrum slips 2.71% this week

Highlights

ARB remains under sustained selling pressure, trading below key moving averages with bearish momentum dominating the weekly trend.
Technical indicators signal weak buyer participation and possible exhaustion to the downside, but most show continued negative momentum.
The 7-day outlook suggests a likely sideways movement near lows, with a predicted range between $0.1224 and $0.1278 amid low breakout probability.

Hacker fund freeze shapes sentiment as Council and DAO boost security

The Arbitrum Security Council exercised its emergency powers to freeze $72 million in stolen funds on the network following the Kelp DAO hack, while the recovery process will be submitted to the Arbitrum DAO for resolution. Council members also criticized Circle for not acting on related hacker threats, in contrast to Tether's proactive measures to freeze malicious funds. Additionally, the DAO Security Fund was introduced to enhance security initiatives across the Ethereum ecosystem.

Bearish momentum dominates as indicators flag mixed exhaustion and weak bids

On the weekly chart, ARB remains under bearish technical control, with both MACD and ADX confirming strong negative momentum. The weekly RSI continues to signal sell conditions, while Stochastic RSI appears overbought and CCI is neutral — a sign of mixed short-term exhaustion. The MA-20 acts as the nearest resistance above price, while support remains at the recent low at $0.1224 and resistance is found at $0.1278. Bull/Bear Power gives a mild buy signal, but the broader indicators favor sellers for now.

Limited upside seen as forecast eyes narrow range near support

For the next 7 days, ARB is expected to trade between $0.1224 and $0.1278. The probability of an upward move is very low, with scenario analysis pointing toward continued sideways action near recent lows. Should ARB break above $0.1278, a short-term test of resistance is possible, while a decline below $0.1224 could trigger further weakness if sellers remain in control.

Anton Kharitonov, expert at Traders Union, sees Arbitrum locked in a steady bearish trend this week. The asset remains beneath key moving averages, with all main technical signals supporting continued seller dominance. The news backdrop highlights increased security measures but has not sparked any positive momentum. This week, he notes cautious sentiment, as even minor technical buy signals are overshadowed by persistent negative momentum and exhausted oscillators. Kharitonov believes that unless ARB breaks above $0.1278 soon, sideways trading or new lows look likely. "With sellers still in control and upside probability extremely low, I am remaining defensive as long as ARB trades below key resistance at $0.1278."

Earlier, analysts noted that Arbitrum was caught in a consolidating, bearish environment, with weak momentum limiting upside potential. With current technical signals still favoring sellers and volatility persisting near recent lows, traders should closely monitor the $0.1224 support level as a decisive break could expose ARB to further downside risk in the week ahead.

Source of Data: ARB Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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