Crypto Bulls Eye Arbitrum: Breakout Imminent?
Arbitrum (ARB) is showing signs of a bullish recovery after completing a clear corrective structure. The token recently bounced from a strong support level, and now traders are watching for a breakout that could confirm the next leg upward.
Correction Bottoms Out at $0.25
In early April, ARB experienced a sharp impulsive rally, followed by a complex correction. This corrective move formed a W-X-Y-X-Z pattern, which concluded around April 7, when the token bottomed near $0.25.
This level acted as a solid support zone, triggering a bullish reversal.
Arbitrum (ARB) bounces from key support and eyes a bullish breakout.
Explore what’s next in our detailed Arbitrum Price Prediction.👇
https://coinpedia.org/price-prediction/arbitrum-arb-price-prediction/
Impulse Rally and Current Pullback
From the $0.25 low, ARB surged to $0.50, forming a clear five-wave impulsive structure — likely waves (i) to (iii) of a larger bullish cycle. However, after this rapid rise, a pullback was expected.
The ongoing decline is now forming a corrective wave (iv) within a descending channel, with price bouncing off the $0.36 support zone.
RSI Hints at Rebound Potential
The Relative Strength Index (RSI) on the 4-hour chart confirmed the overheated conditions during the wave (iii) rally, reaching a peak of 93. The correction that followed helped reset the RSI, which dipped to around 30% on May 17 — signaling potential for another upward move.
As long as ARB holds the $0.36 support level, the broader bullish structure remains intact.
What’s Next for ARB?
If this analysis proves accurate, ARB could be entering wave (v) of the current cycle. A successful breakout could drive the price toward the $0.62 level, which aligns with the 0.382 Fibonacci retracement.
However, any break below $0.36 would invalidate the bullish setup and raise the risk of a deeper drop — possibly toward $0.30.
Arbitrum is currently in a key technical zone. With a strong base forming at $0.36 and bullish momentum slowly building, a clean breakout could pave the way for a significant rally. But caution remains important — if support fails, the bulls may need to regroup at lower levels.