Arbitrum Breakout Sparks Momentum With Analysts Eyeing a Move Toward $2.27
Arbitrum (ARB) is trading near $0.51 while analysts monitor a breakout pattern that could pave the way for a larger rally. The cryptocurrency recently broke out of a falling wedge, a formation often linked with trend reversals, and traders now look at $2.27 as a potential long-term target.
Technical Structure and Market Position
Arbitrum has been consolidating near the $0.51 to $0.54 range, an area considered crucial by traders. Arbitrum is holding above the 20-day exponential moving average at $0.43 but continues to test the 50-day exponential moving average near $0.53. This area also matches the lower boundary of the Ichimoku Cloud, creating a strong resistance zone that must be cleared for momentum to continue.
Source: TradingView
Market indicators present mixed conditions. The Relative Strength Index stands around 54, signaling neutral momentum, while the MACD remains on the bullish side with green histogram bars supporting upward momentum. Bollinger Bands suggest that the price is oscillating near its middle band, while volume levels remain steady at more than $130 million on Binance.
Arbitrum Breakout and Price Targets
Bitcoinsensus reported that Arbitrum has exited a weekly falling wedge formation, which is a setup often linked with strong reversals. According to their analysis, this structure suggests a possible 400 percent rise if momentum persists, taking the token to $2.27. The short-term resistance remains near $0.58, while a break above $0.54 could open the path toward $0.65.
Trader Posty also commented on Arbitrum’s price movement, saying he remains long despite uncertainty. “Surprisingly still long here as price has shown enough strength to not be invalidated,” he said, noting that the market remains undecided but resilient. This cautious approach mirrors the broader market view, where traders are monitoring support near $0.43 while waiting for confirmation of a breakout.
Surprisingly still long here as price has shown enough strength to not be invalidated.
Don’t love it, don’t hate it.
Will let this one play out. https://t.co/6cRdErsfgC pic.twitter.com/gtBlHrn61j
— Posty (@PostyXBT) August 18, 2025
Support, Resistance, and Trader Outlook
The keyword Arbitrum continues to attract attention as its price hovers above multiple moving averages. Arbitrum sits well above the simple moving average 200 at $0.39, which signals that the long-term trend remains upward despite recent volatility. Analysts warn, however, that if $0.43 is lost, the market could revisit levels near $0.38 and possibly $0.36.
Short-term traders are focusing on the $0.51 to $0.56 range, where liquidity has remained strong. Aggressive traders see the current level as a possible entry point, with stops below $0.48 and targets toward $0.58. More conservative traders prefer to wait for a pullback near $0.45 to $0.47 to improve the risk-to-reward setup.
Long-term investors are watching whether Arbitrum can retest $0.77, which aligns with the 200-day exponential moving average and serves as a psychological barrier. Should the token maintain momentum above $0.54 and confirm strength, analysts believe the $2.27 level remains possible within the next trend cycle.
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Filed under: Bitcoin - @ August 19, 2025 1:08 am