Arbitrum price prediction: Will $0.0681 support hold as ARB falls 7.28%?
Arbitrum (ARB) is trading at $0.0713, down 7.28% on the day. The token sits below its major moving averages, reflecting ongoing pressure compared to recent sessions.
Highlights
- Arbitrum saw over $750,000 in long position liquidations amid forced selling and sharp risk-off sentiment.
- Stablecoin outflows reached $191 million since mid-June, with $105.48 million bridged out last week, signaling major liquidity erosion.
- Bearish technical signals and sustained sell momentum point to likely further downside, with key support at $0.0681 and resistance at $0.0758.
Forced liquidations and capital outflows weaken support and liquidity
Long positions in ARB suffered liquidations totaling over $750,000 as shorts saw minimal losses, highlighting a wave of forced selling. On-chain data indicate that nearly $191 million in stablecoins have exited the Arbitrum network since mid-June, reducing available liquidity and diminishing transactional depth. The network also recorded the largest net bridge outflow among major protocols in the past week, with $105.48 million leaving via cross-chain bridges according to Pluang, reflecting material declines in user capital retention and weakening underlying support.
Sustained selling pressure as technical resistance and negative signals align
On the hourly chart, ARB/USD is trading beneath the 20-period moving average at $0.0761 and the 50-period moving average at $0.0773. On the daily chart, the token remains well below the 200-period moving average at $0.1315. The Ichimoku Kijun stands at $0.0758, serving as the nearest resistance level. Momentum readings show Moving Average Convergence Divergence (MACD) at Strong Sell, Average Directional Index (ADX) indicating a Sell bias, while the Relative Strength Index (RSI) is at 43.60, aligning with a Sell stance. Stochastic RSI and Commodity Channel Index (CCI) are both Neutral, and Bull/Bear Power registers a Sell signal. The Awesome Oscillator is Neutral, offering no additional confirmation. Overall, the combination of negative momentum indicators and the proximity to intraday lows underscores sustained selling activity but is not yet extreme on the oscillators.
Range-bound trading likely amid high downside risk and resistance limits
In the near term, ARB is expected to trade between $0.0681 and $0.0769 over the next two to three days as volatility persists. The probability of a further decline is notably high, with little likelihood of a material rebound unless the price breaks decisively above the $0.0758 Kijun resistance. A bearish acceleration is likely should support at $0.0681 fail, while a bullish scenario would only be considered if ARB reclaims levels above immediate resistance. For now, continued consolidation within the stated range reflects the asset's typical volatility band relative to current levels.
Previously it was reported that Arbitrum was experiencing persistent bearish momentum amid diminished network activity and continued sell-side pressure. The latest wave of capital outflows and accelerated liquidations now intensifies this negative backdrop, with traders advised to monitor for a decisive move below $0.0681 as a trigger for further downside risk.
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