Arbitrum Price Eyes 50% Rally: Can DeFi Growth Keep It Alive?

Key Insights:

• Arbitrum price has crossed $0.51 and holds a 3-month gain of over 32%.
• Net USD inflows are rising, but whale accumulation remains missing.
• A 50% rally to $1.10 is possible if DeFi activity keeps growing and $0.50 support holds.

Arbitrum is one of the few digital assets that’s holding up while most of the crypto market is bleeding. It’s up over 4% in the past 24 hours and has finally crossed the 50-cent mark.

That alone is big news for a token that has mostly been moving sideways for weeks.

But the real headline is this: Arbitrum price has added 32% in the past three months, and many traders now think a rally to $1.10 might be on the table.

The question is: can growing DeFi activity push the price that far? Or will bears take over before that happens?

Arbitrum Price: Big Inflows, Small Whales, and Mixed On-Chain Signs

Arbitrum is showing strong DeFi activity. Over the past month, the number of active wallets on the chain has gone up by 12.57%.

That puts it right behind Ethereum and Base, which is a solid sign of new users and projects coming in.

Even more telling is the net USD inflow data. Arbitrum is the second-best chain right now in terms of real money coming in, just behind Ethereum. That shows investors are not just using it; they’re trusting it.

Still, there’s a catch. Whale activity remains muted. While there are inflows, we’re not seeing large wallets accumulate heavily. That means the current demand is mostly retail-driven, which are driving the Arbitrum price higher.

It’s not weak, but it’s not the kind of heavy lifting that usually powers a full-on rally. On top of that, other metrics show traders are still being cautious.

There isn’t a breakout in long-term on-chain participation yet; it’s steady, not explosive.

One metric worth watching is the “bull power,” which tracks how strong the buying pressure is. That indicator has been falling since August 13, even as the price slowly moved up.

This tells us that while Arbitrum price is rising, the momentum is cooling down. If this trend keeps up and inflows start to slow, bears might begin to gain control again.

Arbitrum Price Chart Points to $1.10 if it Holds $0.50

Looking at the chart, Arbitrum price is in a pretty important spot. It’s trading just above $0.51, a zone that acted as resistance before.

The recent breakout gives bulls a strong base to work with. Based on the Fibonacci extensions, the next big resistance level is around $1.10, which would mean a nearly 50% rally from the current level.

But hitting that target won’t be easy unless support at $0.50 holds. If ARB price breaks down below that again, the rally could lose steam fast.

That would invalidate this entire bullish setup, especially if it drops below $0.46 with high selling volume.

Until then, the setup still looks positive, but the strength of that setup depends on whether users and capital keep flowing in.

What Should Traders Watch for ARB Price?

Right now, everything depends on whether DeFi growth can keep pushing Arbitrum price up.

If new users keep showing up, and funds keep flowing in, especially from larger players, then the $1.10 target is still alive.

But if the current trend starts fading, bears might stall the rally and trap ARB price back into a range between $0.46 and $0.52.

The key is watching whether daily activity, inflows, and momentum all stay steady. If any of those drop sharply, it could signal that buyers are backing off.

But if they keep growing, then Arbitrum price may surprise many with a breakout rally, even as the rest of the market stays red.

In short, the momentum is there. But it’s walking a fine line. And in a market like this, that line can change quickly, especially if bears smell weakness.