Arbitrum Price Outlook: Can ARB Break $0.20?

ARB’s Q3 Rebound Offsets Previous Quarter’s Losses

ARB has plunged nearly 20% YTD on Coinbase. However, Q3 has turned out to be a bright spot for the token, as it has doubled since early July, with the prior quarter’s bearish trend fully offset.

Robinhood Chain Fuels the Arbitrum Rally

The key event pushing ARB higher was the launch of Robinhood Chain. This is an Ethereum Layer 2 network built using Arbitrum Orbit infrastructure.

The network posted some impressive numbers. Specifically, crypto analysts noted that daily fees amounted to $3.75 mn, surpassing those on both Ethereum and Coinbase.

According to CoinMarketCap, the network’s total DEX volumes topped $47 bn in less than three months, while daily gross revenue shot up ~20x to $1.1 mn.

Notably, revenue generated on Robinhood Chain does not go directly to ARB holders, as payments require a vote.

So, the current rally looks like a classic “buy the rumor” scenario.

September Token Unlocks Add Supply Pressure

Meanwhile, market participants are also focused on risks. On September 16, 92.6 mn ARB tokens worth ~$15 mn are scheduled to be unlocked.

Another 139 mn ARBs (~1.4% of total supply) will be unlocked on September 23.

This could lead to heightened volatility and put downward pressure on the token.

ARB Price Analysis: Resistance at $0.20 and $0.25

From a technical standpoint, the recent move can be viewed as a pullback. The next local target for the bulls is USD 0.2, where the first 23.6% Fibonacci retracement level lies.

The token has already tested that mark, but the bulls have so far failed to break past and hold north of it.

For this reason, another attempt could be in the cards. The weekly chart’s regression channel clearly shows the direction of the current trend.

At this stage, investors appear to lack confidence about the current uptrend or a sustainable rebound.

The scenario could change only if ARB breaks through $0.2 or $0.25.