Arbitrum's Price Outlook: Chain-Based Expansion Indicates Robustness Amid Correction Risks

In the world of cryptocurrencies, Arbitrum, a layer-2 scaling solution, is currently trading at $0.48, marking a nearly 3% decrease in the last 24 hours. The digital asset has shown resilience, repeatedly defending the $0.45 support area, with the $0.45 zone becoming a key defense level for buyers.

According to an analysis by Cryptopolitan, Arbitrum's price behavior is forming a triangle pattern. The descending trendline is pressing from above, suggesting a potential ABC corrective leg is developing on Arbitrum's 4H chart. This could lead to a short-term dip towards the $0.40 to $0.38 support box.

However, there's reason for optimism. Arbitrum's strong on-chain activity indicates a vibrant ecosystem. The network has seen an 18% increase in activity over the past 24 hours, with 2.5 million transactions reported by Nansen. Over 370,000 active wallets are currently participating on the Arbitrum network, and volume over the past 24 hours reached $409 million. Tether and Circle continue to dominate settlement activity on the Arbitrum chain, indicating strong stablecoin demand.

The broader range for Arbitrum's price remains $0.45 as the main support and $0.55 to $0.60 as the overhead resistance zone. Breaking above the trendline could signal renewed momentum for Arbitrum and potentially unlock a push back toward $0.55.

It's important to note that Arbitrum's bubble risk index has edged higher to 1.24, keeping caution in play. Arbitrum is struggling to reclaim momentum after failing to break above the $0.55 to $0.60 resistance zone. Holding the $0.45 support would be essential to avoid deeper downside.

Over the past month, ARB has fluctuated between $0.45 and $0.60. If the $0.45 support holds, ARB could attempt another push towards the mid-range resistance around $0.52 to $0.55.

In conclusion, while Arbitrum is currently facing challenges in its price action, its strong on-chain activity offers a glimmer of hope. As the market consolidates, it will be interesting to see if Arbitrum can break its resistance and reclaim its momentum.