Arbitrum (ARB) Price Prediction: Can PayPal’s PYUSD Integration Fuel a Breakout to $1 and Beyond?

Arbitrum is testing key resistance levels after a long downtrend, with growing adoption and network momentum fueling hopes of a breakout.

After months of being stuck in a downtrend, the charts are finally showing fresh signs of life, and this time, it’s backed by real adoption. ARB is pressing into a long-standing descending trendline that has capped every rally since early 2024.

Arbitrum’s current price is $0.47, up 1.80% in the last 24 hours. Source: Brave New Coin

PayPal Taps Arbitrum to Expand PYUSD Utility

Arbitrum just landed a major credibility boost. PayPal has officially expanded its stablecoin, PYUSD, onto Arbitrum, marking the first Layer 2 integration for the fintech giant’s digital dollar. This isn’t just a technical bridge; it’s a signal that mainstream payment infrastructure is starting to embrace Ethereum L2s.

PayPal’s PYUSD goes live on Arbitrum. Source: Andreea via X

With this move, developers can now deploy PYUSD across Arbitrum’s high-speed, low-cost network, unlocking new stablecoin use cases in DeFi, payments, and enterprise-grade apps. Layer 2s have been competing fiercely for institutional adoption, and Arbitrum just took the lead. It’s an important step for ARB that plays a positive role for the price as well.

Arbitrum Price Tests Downtrend Line After Months

After nearly a year of lower highs, Arbitrum is finally making a serious attempt at breaking its long-standing downtrend. The weekly chart shared by CryptoBusy shows ARB pushing directly into the descending resistance line that has capped every rally since early 2024. This is a key technical moment, price is also approaching horizontal resistance around the $0.47 to $0.48 zone, which acted as both support and rejection in past cycles.

Arbitrum pushes into key trendline resistance after nearly a year of lower highs, setting the stage for a potential breakout. Source: CryptoBusy via X

ARB has formed a broad base with multiple higher lows, suggesting seller exhaustion and potential accumulation. If bulls can close above the trendline on a weekly candle, it could shift market structure and signal the start of a larger trend reversal. For now, all eyes are on this breakout zone. A clean push through opens the door toward the $0.70 to $0.80 range, while another rejection could mean extended consolidation below.

Arbitrum Price Climbs Toward Key Channel Resistance

The structure shared by Ali Martinez shows Arbitrum climbing in a clear rising leg within a long-standing descending channel. After bouncing from the $0.30 zone earlier, the price has now rallied back into mid-channel territory and is approaching the upper trendline for the first time in months. That upper boundary, sitting near $0.64 to $0.70, also lines up with prior Fibonacci confluence zones.

Arbitrum climbs toward upper channel resistance, with rising momentum hinting at a potential breakout. Source: Ali Martinez via X

So far, the price action looks smooth rather than overextension. The move has been supported by higher lows and steady momentum, suggesting that this may not be just a relief rally. If bulls can tag or even pierce through the channel top with conviction, it would mark a structural breakout that could shift sentiment sharply. Until then, ARB remains technically range-bound, but the trajectory is starting to turn slightly in favor of bulls.

Arbitrum Fees and Inflows Hit New Highs as Network Activity Surges

Arbitrum’s on-chain growth story is translating into real economic momentum. According to the latest Timeboost data, the network has now generated over $2.42 million in cumulative fees. This fee spike isn’t happening in isolation; it’s riding on the back of a broader uptick in usage, including a one-day all-time high in net inflows totaling $676 million. That’s a staggering 600% increase in just 30 days, positioning Arbitrum firmly at the top of the Layer 2 leaderboard for inflows and fee generation.

Arbitrum logs $2.42M in fees and $676M in daily inflows, leading the Layer 2 pack in network activity. Source: Timeboost via X

From a technical lens, this kind of sustained network engagement provides a stronger foundation for price trends. As noted earlier, ARB is approaching key resistance zones on both weekly and channel-based charts. If these fundamentals persist, the ongoing price momentum may continue to find support.

Analyst PSY Starting to Think Bigger: $ARB to $5?

While $5 may sound like a moonshot right now, the narrative around Arbitrum is shifting. With a strong confluence of positive catalysts, from PayPal’s integration of PYUSD to record-breaking Timeboost fees and inflows, the foundation for long-term price appreciation is being laid brick by brick. For ARB to eventually revisit the $5 zone, it would need not just speculative momentum but sustained utility, TVL growth, and continued L2 dominance. That’s exactly the direction current fundamentals are pointing towards.

Analyst PSY floats a bold $5 target for ARB. Source: PSY via X

Technically speaking, it’s still early. Arbitrum is just beginning to break out of its long downtrend, testing horizontal and diagonal resistance levels around $0.47 to $0.50. While $5 remains far above the current price and would require a near 10x move, this kind of target can start to come into view if structural breakout levels give way and the broader market sentiment flips risk-on.

Final Thoughts: What Next for Arbitrum?

The pieces are starting to fall into place for Arbitrum. With PayPal’s PYUSD now live on Arbitrum, the chain has officially landed integration that could ripple through the entire Layer 2 space. Combine that with the clean technical setup forming on the weekly and channel charts, and ARB is beginning to look like one of the better-positioned L2s heading into the next leg of the market.

That said, bulls have to clear multiple hurdles, namely, that heavy resistance zone near $0.70, and hold above it with volume. But if that happens, the structure could open up fast, with plenty of room toward $1.00 and even beyond.