Arbitrum (ARB) Falls 10% After Robinhood-Fueled Rally: What’s Next for the Token?

Andrew Chen
Arbitrum (ARB)

Key Takeaways:

  • ARB rallied 17% on Robinhood speculation, only to drop 10% as early investors sold.
  • Technical indicators show bearish momentum; RSI and BoP suggest weakness.
  • Support at $0.29 is crucial — a breakdown could lead to deeper losses.

Arbitrum’s native token, ARB, saw a dramatic price rollercoaster over the past few days. After soaring over 17% on June 30 due to rumors of a Robinhood partnership, ARB has since pulled back more than 10%, trading around $0.32 at press time — down nearly 5% over the last 30 days.

Robinhood Speculation Fuels Hype Rally

The initial spike was sparked by Robinhood Crypto’s teaser of its “biggest crypto announcements of the year” during a high-profile fireside chat in Cannes. The event featured Ethereum co-founder Vitalik Buterin, Robinhood Crypto’s Johann Kerbrat, and Offchain Labs’ A.J. Warner, further stoking speculation of a deeper integration with Ethereum layer-2 protocols like Arbitrum.

Former Ethereum developer Eric Connor fanned the flames by hinting that “Robinhood chose Arbitrum.” Though unconfirmed, this comment alone drove a wave of FOMO buying that sent ARB soaring to local highs.

Early Investors Dump on the Rally

However, the euphoria was short-lived. Within 12 hours of the pump, analytics platform The Data Nerd revealed that early investors — including major backers like Paradigm Capital — transferred over 16.75 million ARB tokens, worth nearly $5.85 million, to centralized exchanges such as Binance and Coinbase.

This strategic offloading suggests a textbook “buy the rumor, sell the news” play. The result: ARB retraced sharply, shedding over 10% from its local peak.

Technical Indicators Flash Bearish Warnings

From a technical perspective, the Balance of Power (BoP) indicator on ARB’s daily chart has plunged to -0.86, showing clear seller dominance. The Relative Strength Index (RSI) has also dipped to 48.88, while its moving average lingers at 43.27, confirming waning bullish momentum.

Also Read: Arbitrum (ARB) Surges 40% in a Week Amid Robinhood Speculation and Wallet Spike

Key support lies at the $0.2937 Fibonacci level (0.236 Fib). A break below this could drive price down to the recent low of $0.2526. On the upside, bulls face stiff resistance at $0.38 (0.618 Fib) and $0.4267, with higher targets only possible if momentum strongly reverses.

While the Robinhood rumors sparked a powerful — albeit brief — surge in ARB, the subsequent sell-off underscores lingering volatility and skepticism in the altcoin market. Without confirmation of the Robinhood partnership or new bullish catalysts, ARB could remain under pressure in the short term.

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 Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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