• At press time, ARB appears to be trading within a cup-with-handle pattern – a bullish signal that often signals a big move higher

  • The rebound depends on ARB entering a major demand zone, and whales may play a role in driving this move

ARB has struggled to maintain its bullish momentum as of late, with the altcoin having begun to decline on the charts. In fact, over the past month, the altcoin is down 14.28% on the charts — a trend that has continued over the past week and in the past 24 hours.

Although ARB may decline further in the short term, it may soon recover and resume its bullish trend, leading to higher return potential.

ARB’s bullish pattern forms

ARB has started trading inside a bullish cup-with-handle pattern, as shown on the chart with the marker line. This pattern usually signals that the asset will rise, at least in the short term.

For ARB, once the pattern fully develops, the expected rally could push the price to at least $1.5.

However, before a rebound can begin, ARB could fall further as it searches for a demand zone with enough momentum between $0.74 and $0.659. Once this level is reached, the asset is expected to move higher.

ARB buy order placed

Analysis by AMBCrypto found a demand level on the chart that could push ARB higher. According to IOMAP, this demand area coincides with the “In the Money” area, where 13,200 addresses hold 320,000 ARB – marking it as a high-impact support level.

IOMAP, a tool used to identify key support and resistance areas, reveals the distribution of addresses based on profitability, with “In the Money” referring to profitable addresses and “Out of the Money” representing losing addresses.

When ARB enters the “in-the-price” zone, one can expect the price to trend upward from this point on.

The bull-bear ratio (comparing the number of bullish and bearish whales) shows that bullish whales are at 39 and bearish whales are at 49. This suggests that bearish whales may be driving ARB lower, pushing it towards the demand zone as they seek favorable prices in line with buying activity before re-entering.

Given this sentiment, ARB could fall more than the 5.06% drop recorded on a daily basis.

Derivatives traders are entering the market

According to Coinglass, the ARB funding rate has begun to rise. In the past 24 hours, the rate has climbed to 0.0097%, which is in positive territory.

A positive funding rate indicates that long derivatives traders (especially those using leverage) dominate the market and help maintain price stability.

In short, the sentiment surrounding ARB remains bullish and its slight decline may just be part of a necessary correction before rising higher.