ARB is trading approximately 96% below its 2024 ATH, with analysts viewing the current compression of the demand zone as a potential long-term accumulation phase for a future trend reversal.
Arbitrum’s native token (ARB) is trading near all-time lows after a prolonged decline from its 2024 high, with technical analysts identifying the current price level as a potential long-term entry point, according to market analysis.
The token reached its all-time high in 2024 before entering a sustained downtrend. The asset is now trading about 96% below its peak, positioned in what analysts describe as a long-term block of demand, according to technical chart analysis.
A market analyst noted that the token is positioned at the bottom of a multi-year descending channel within a long-term demand block. This level is of historical significance, with previous surrender wicks forming in the same area, according to the analysis. Price action compressed sideways after the most recent decline.
Technical analysts treat the current range as an area of structural accumulation. Volume absorption at this level suggests diminishing sales momentum, according to market observers. The compression in volatility supports the possibility of a price base forming, analysts said.
According to technical analysis, the characteristics of a Wyckoff accumulation cycle appear to be forming on the token’s chart. Phase C, which typically marks the final shake-up before a recovery in the classical framework, appears to be in play. Demand absorption signals suggest institutional-style accumulation in the current price range, analysts reported.
Two levels appear as critical confirmation points for traders monitoring the asset. A break above initial resistance would mark the first breakout of the structure favoring buyers, while a move above higher resistance would signal a complete change in trend regime, according to technical analysis.
The analyst outlined a multi-step target path reaching past resistance zones and longer-term projection targets. According to the analysis, a full-cycle expansion would represent substantial gains from current levels. On the other hand, a defined level of invalidation remains the reference point for the accumulation thesis. A prolonged close below this level would negate the current technical structure, analysts said.
The pattern is attracting the attention of technically motivated traders due to multiple technical confluences including channel support, all-time lows, volume absorption and volatility compression converging towards the same area, according to market analysis.
Arbitrum is classified as a high beta asset, meaning it tends to move strongly when broader cryptocurrency market conditions change. This amplified sensitivity creates both downside risk and potential upside opportunity during recovery cycles, analysts noted.
No directional movement has been confirmed and traders are waiting for confirmation of the structure before taking larger positions, according to market observers.