Arbitrum (ARB), the governance token of the Ethereum Layer-2 project, is among the top gainers in the crypto market today. In the past 24 hours, ARB has surged by 10%, fueled by its recent listing on the American exchange Robinhood.
Robinhood Listing Triggers ARB Rally
On March 5, Robinhood confirmed the addition of ARB to its trading platform, leading to a swift price jump from $0.38 to $0.42. This development has increased market enthusiasm around the token, but technical indicators suggest ARB could face resistance at higher levels.
Arbitrum ($ARB) is now available to trade on Robinhood. pic.twitter.com/wBIwmtqwXe
— Robinhood (@RobinhoodApp) March 5, 2025
Potential Reversal on the Horizon?
Despite its recent gains, ARB’s price action suggests caution. The token is still trading within a descending channel, with strong resistance forming near $0.46. The Supertrend indicator also aligns with this resistance, signaling a potential pullback if ARB attempts to break higher.
Additionally, on-chain data from Santiment reinforces the possibility of a short-term correction. The price-to-Daily Active Addresses (DAA) divergence, a key metric measuring user interaction, has turned negative. This indicates a decline in engagement, which could weaken ARB’s bullish momentum.
ARB’s Price Targets: Breakout or Rejection?
On the daily chart, ARB remains below the 20-period Exponential Moving Average (EMA), a sign of bearish pressure. The Relative Strength Index (RSI) currently sits at 42.94, showing weak momentum that could push the token lower toward the $0.35 support level.
However, if ARB breaks above the 20 EMA, renewed bullish sentiment could propel the price to $0.56, aligning with the 0.236 Fibonacci level. A further breakout could even see ARB reach $0.69, depending on market demand.
While the Robinhood listing has provided a short-term boost, ARB must overcome key technical hurdles to sustain its rally. Traders should closely watch the $0.46 resistance and the 20 EMA for signs of a breakout or further downside.
Also Read: Arbitrum (ARB) Signals Bullish Reversal as Selling Pressure Eases
As the crypto market remains volatile, ARB’s future trajectory will depend on broader market trends and investor sentiment.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
