Arbitrum’s (ARB) Recovery Potential: TD 9 Buy Signal at Key Demand Zone

• The TD Sequential 9 buy signal shows potential seller exhaustion in the Arbitrum price.

• Arbitrum’s TVL trend indicates sustained protocol use despite price struggles.

• ARB’s weekly chart signals weakening sell pressure, setting the stage for recovery.

Arbitrum ($ARB) has recently shown potential signs of recovery. The 12-hour chart is printing a TD Sequential 9 buy signal right at a critical demand zone around $0.175–$0.176.

This setup suggests a possible trend reversal, indicating that the bearish momentum may be losing strength. While the price remains under pressure, key technical indicators and trends hint at a potential bullish recovery if certain levels hold.

TD Sequential Buy Signal at Demand Zone

The TD Sequential 9 buy signal on the 12-hour chart is a notable development. This signal is designed to highlight trend exhaustion, and its appearance at a key demand zone suggests that seller fatigue may be setting in.

The demand zone between $0.175 and $0.176 had previously seen price wicks snap back quickly, a common feature of stop-hunt behavior. The candle that marked the TD 9 signal was long-bodied with a strong close.

This reflects aggressive dip buyers stepping in at a crucial level. If the $0.17 support holds, it could serve as a solid defensive line for bulls, providing a platform for potential price recovery.

TD Sequential flashed a buy signal on Arbitrum $ARB.

As long as $0.17 holds, upside toward $0.20 remains on the table. pic.twitter.com/AN378t1PPy

— Ali Charts (@alicharts) January 23, 2026

The first significant resistance lies at $0.198–$0.20, which is the level that previously acted as support and is now expected to function as resistance.

TVL Trends Show Resilience Despite Price Struggles

Arbitrum’s Total Value Locked (TVL) has displayed resilience even as its price struggles. During the explosive growth phase from 2021 to early 2022. TVL surged from near-zero to over $2 billion.

Terrible market conditions are usually the best time to accumulate positions.

Fundamental growth in $ARB is going vertical; TVL continues to rally, yet the asset has printed new lows.

Watch this video:https://t.co/Mys8gPqSeU

That’s why I made an update on how I’d be building… pic.twitter.com/B0npU4PmXB

— Michaël van de Poppe (@CryptoMichNL) January 23, 2026

This growth was a sign of the network’s increasing usage, driven by lower fees and faster transactions on Ethereum’s Layer-2. Following the 2022–2023 bear market, the TVL didn’t collapse; it consolidated, maintaining a strong base of liquidity.

By 2024, TVL began trending higher again, reaching nearly $4 billion. The recent pullback into the $3 billion range suggests this is a consolidation phase. This divergence between price action and TVL points to continued conviction in the Arbitrum ecosystem.

Weekly Chart Signals Late-Stage Downtrend Behavior

The recent candles show long lower wicks and compressed bodies, signaling that selling pressure is weakening.

Volume has also decreased in recent weeks, suggesting that forced sellers are mostly finished. While momentum indicators like the RSI aren’t signaling an immediate buy, they show that downward momentum is slowing.

A break above $0.20–$0.22 would mark the first higher low on the weekly chart, potentially signaling a shift in market sentiment. Arbitrum’s price action and TVL trends suggest that a recovery could be in the cards, although patience is required.

With key support at $0.17 and resistance at $0.20–$0.22, the next few weeks will be crucial in determining whether the market can sustain a reversal.