Will he break out of the Triangle?

Analysts predicted a 46% rise for Arbitrum if it breaks the $0.78 resistance within the descending triangle.
Data on the chain showed bearish sentiment, but traders will target $1.0690 if bullish momentum returns.

Arbitrum (ARB) was trading within a classic descending triangle pattern, a structure often associated with breakout opportunities.

Analysts praise A breakout could lead to a 46% price rally, putting pressure on ARB's next move. With the price currently consolidating near key support levels, traders are looking for critical price reactions.

At the time of writing, ARB was trading at $0.7066, with a 24-hour trading volume of $606,785,204, showing a decline of 3.51% over the past day.

ARB has also seen a 7-day decline of 3.24%, and its current market value is $3.05 billion, with a circulating supply of 4.3 billion ARB tokens.

Key support and resistance levels

The ARB / USDT chart is showing bearish pressure, with the price consolidating near the $0.6890 support level, which is crucial for stability.

Failure to hold above this level could move prices lower, possibly testing $0.6500, a psychological support level.

Immediate resistance is noted at $0.78, where the descending trend has rejected price movements multiple times.

Fibonacci levels at $0.8661 (0.618) and $0.9077 (0.786) represent key obstacles if ARB tries to move up.

Source: X

According to analysts, a decisive break above these levels could pave the way for a path up to $1.0690 or higher.

Indicators point to bearish sentiment

Technical indicators align with a bearish outlook in the short term. ARB's Ichimoku Cloud analysis shows the price trading below the cloud, suggesting current bearish momentum.

In addition, the Tenkan-sen ($0.7426) and Kijun-sen ($0.8032) lines are big faces.

The Relative Strength Index (RSI) is at 40.57, just above overvalued territory, indicating a weak trend. Despite this, there are no signs of a bullish divergence, suggesting that sellers are still gaining the upper hand.

Source: TradingView

Weak volume activity further reinforces the lack of buying interest, making the next move largely dependent on whether ARB can recover the $0.74 level.

Metrics on the chain show a decline in participation

Data on chain from Enter the Block indicating bearish sentiment, with all four metrics moving negatively.

Net network growth at -1.10% reflects a decrease in new partner activity. The “In the Money” metric stood at -2.09% indicating a decrease in profitable wallet addresses.

Volume trading activity remains subdued, with 234 transactions in the past 24 hours, down from a 7-day high of 238.

Analysts attribute the decline to a lack of interest from high-value investors, correlating with the price stalling near the $0.50 division.