After a nearly two-year downtrend, Arbitrum's native token ARB is showing early technical signs of stabilization and potential accumulation near a critical historical support zone. The token gained 4% intraday and is up roughly 8% on the week, trading approximately 96% below its 2024 all-time high near $2.42.
Technical analysis indicates ARB is compressing at the bottom of a multi-year descending channel, within a high-timeframe demand block between $0.09 and $0.06. This area aligns with historical capitulation wicks, suggesting aggressive selling may be exhausted. Volume behavior and volatility compression point to weakening sell pressure and possible supply absorption, characteristics often associated with a Wyckoff Accumulation structure, where the token may be transitioning from Phase C into early Phase D.
On-chain data adds support to this thesis. ARB spot netflows show consistent net outflows from exchanges, indicating more tokens are being withdrawn than deposited. This trend reduces near-term sell pressure and suggests long-term holding or strategic accumulation is occurring directly within the key demand zone.
For the bullish reversal thesis to strengthen, ARB must reclaim key resistance levels. The first major bullish confirmation would be a break above $0.23, signaling a break of structure. A move above $0.49 would represent a break of the descending trendline and a potential trend-regime shift. Above these levels, extended cycle scenarios open upside toward $1.20 and the prior cycle high. The critical invalidation level for the accumulation thesis is a sustained breakdown below $0.06.
Analysts note that ARB, as a high-beta asset, is highly sensitive to broader market conditions. While no directional move has been confirmed, the convergence of technical factors—including channel support, historical lows, volume absorption, and volatility compression—has drawn attention from traders looking for a potential long-term entry point ahead of a possible trend reversal.
