Arbitrum (ARB) Price Prediction: ARB Drops to 3-Month Lows—Is a Reversal Brewing Near the $0.20 Zone?

Arbitrum ARB slides to 3-month lows as participants eye key supports near $0.22–$0.20, watching closely to see whether the next move sparks a reversal or deeper downside.

ARB has slipped into fresh 3-month lows, and the move is now forcing traders to focus on the deeper liquidity zones that haven’t been tested in months. While the Arbitrum chart clearly leans bearish, several structural levels and on-chain signals show a mix of weakness on the surface and steady activity beneath it. This blend of technical pressure and fundamental growth makes the next reaction zone extremely important for ARB’s short-term direction.

ARB Slips to 3-Month Lows

Arbitrum price has now broken into fresh 3-month lows, sliding from the $0.30–$0.32 consolidation range and trading near $0.24. The broader structure now remains indecisive ARB gets trapped between a major macro-range.

ARB Slips to 3-Month Lows

ARB Arbitrum’s current price is $0.24, down -0.34% in the last 24 hours.

However, as of now ARB continues to respect the descending channel, and every attempt to reclaim mid-range levels around $0.28 has been rejected. Over the past week, volume has thinned significantly. Historically, when ARB enters low-volume breakdowns, the next major reaction tends to occur near zones that have absorbed liquidity before. Below $0.24, the next structural cluster sits at $0.22, followed by the major liquidity pocket around $0.20. A reclaim of $0.27 to $0.28 on rising volume would be required to challenge this bearish bias.

RWA Adoption Continues Accelerating on Arbitrum

Despite price weakness, ARB’s on-chain data shared by Rendra shows momentum in the tokenization sector, with 780 assets tokenized and over $9 million in live RWA value. The mint-and-burn metrics continue to trend upward, reinforcing that activity on ARB is not just narrative-driven but backed by consistent network usage.

RWA Adoption Continues Accelerating on Arbitrum

Arbitrum’s RWA sector keeps expanding with 780 tokenized assets and $9M in live value despite the price drop.

This strengthening RWA footprint provides a fundamental buffer for ARB even while the price trades weakly. Sustainable adoption often diverges from short-term price movement, and if tokenized value continues rising, it could eventually spill into market sentiment. For now, it highlights that ARB’s ecosystem is expanding beneath the surface despite the current technical downturn.

Short-Term Breakdown Signals Further Pressure for ARB

The pennant breakdown shown by KlondikeAI reflects strong selling pressure, with price failing to hold the $0.26 to $0.27 triangle support. The breakdown aligns cleanly with the broader downtrend, pushing ARB towards the $0.24 area, where the next liquidity pocket sits. The measured move of the pennant points towards even lower levels if momentum continues, with $0.18 to $0.20 emerging as primary possible downside levels.

Short-Term Breakdown Signals Further Pressure for ARB

ARB sees pennant breakdown as selling pressure increases towards deeper liquidity zones.

Unless ARB can reclaim the broken trendline near $0.27, the probability of another short-term dip remains elevated. The structure suggests sellers may attempt to target the deeper inefficiency zones before any meaningful recovery forms.

Contrary View: A Possible Reversal Near $0.20

Lumex’s chart offers a different angle, showing that ARB may find traction near the EQ of the October 10th drop, sitting roughly around $0.20 to $0.21. This level lines up with a multi-touch support area where price previously absorbed liquidity and bounced sharply. If ARB reaches this region and reacts strongly, a reclaim of the range low at $0.24 to $0.25 could shift short-term momentum back to the upside. This makes the $0.20 zone a critical area to monitor for signs of a potential reversal.

Contrary View: A Possible Reversal Near $0.20

ARB’s multi-touch support around $0.20–$0.21 emerges as a key zone that previously triggered strong rebounds. Source: Lumex via X

The alternative scenario is that ARB does not fully flush lower but instead forms a short-term deviation below current support before quickly reclaiming the level. In that case, early buyers may look for a move towards the $0.29 to $0.30 region, which matches the next major resistance band on the 4H chart.

Final Thoughts

Arbitrum’s short-term trend remains under pressure, with price currently trading below key structural levels. The next important supports sit at $0.22, followed by the deeper $0.20 demand zone that holds historical liquidity significance. A reclaim of $0.27 to $0.28 is required to shift the momentum back in favour of buyers; otherwise, ARB risks extending toward the inefficiency pockets highlighted earlier.

At the same time, ARB’s growing RWA activity adds a layer of underlying strength that often becomes relevant once technical structure stabilizes. If sellers exhaust near $0.20 to $0.22, the next reaction from that zone may determine whether ARB begins carving out a base or continues its broader downtrend.

Source: https://bravenewcoin.com/insights/arbitrum-arb-price-prediction-arb-drops-to-3-month-lows-is-a-reversal-brewing-near-the-0-20-zone