Arbitrum Price Outlook: Here is What Could Trigger a Rally Toward $0.40

Source: ETHNews Original Title: Arbitrum Price Outlook: Here is What Could Trigger a Rally Toward $0.40 Original Link: Market volatility is beginning to pick up again, and analysts believe Arbitrum is one of the altcoins positioned to benefit if the broader market continues to recover.

With Bitcoin showing renewed strength after its latest bounce, capital is expected to rotate back into altcoins. ARB is highlighted as a top candidate for a potential comeback once key resistance levels are reclaimed.

$0.25 Is the Line That Decides Everything

According to technical analysis, the crucial level to watch is the $0.25 zone. Charts show Arbitrum grinding lower for months, repeatedly losing support before forming a compressed base near current levels.

The $0.25 area sits directly above this consolidation and acts as the first major resistance ARB must break to shift momentum. If that breakout occurs in the next one to two weeks, price acceleration toward the next liquidity cluster around $0.40 is expected, marking ARB’s strongest upside target in the short term.

Price Action Confirms a Slow Recovery Attempt

Arbitrum trades near $0.2207 after a sharp decline between November 19-21, followed by a steady recovery as buyers begin stepping back in. Each upward push is supported by rising volume, signaling early accumulation even with market sentiment still fragile.

The chart reflects a market trying to build a base, placing ARB in a zone where a strong breakout could quickly change its trend.

Metrics Show Deep Fear but a Setup for Sharp Moves

The broader data underscores how compressed ARB has become. The asset trades at $0.2200 with bearish sentiment and a Fear & Greed reading of 25, indicating extreme fear across the market. Volatility remains very high at 14.03%, the RSI sits at a neutral 38.16, and both the 50-day and 200-day SMAs remain above current price levels. This configuration shows heavy oversold pressure but the potential for rapid momentum if confidence returns.

What Comes Next for ARB

Everything now depends on the battle at $0.25. A clean breakout above this level would mark ARB’s first meaningful shift in trend after months of decline. If bulls manage to flip it into support, a move toward $0.40 could follow quickly. If not, Arbitrum risks remaining trapped in its lower range until broader market sentiment improves.