The cryptocurrency Arbitrum (ARB) has attracted the attention of investors and analysts, recording an impressive 37% growth in just one week. This jump occurred against the backdrop of a general market recovery and growing interest in Layer 2 solutions, of which Arbitrum is one. However, in addition to the short-term rally, the experts' attention was also focused on ARB's monthly chart, which could show the formation of a long-awaited trend reversal.
What Were The Catalysts Of Growth?
Arbitrum's growth can be attributed to several simultaneous factors. First, the general improvement in sentiment in the altcoin market has encouraged capital inflows to infrastructure projects such as Arbitrum, Optimism and zkSync. However, Arbitrum proved to be the most profitable among the competitors, due to the high activity in the ecosystem and the increasing number of developers involved.
Secondly, there was a sharp increase in transaction volumes and activity in Arbitrum-based dApps. According to L2Beat and other analysis platforms, the protocol maintains a consistently high processing capacity with minimal commissions, making it attractive to both users and developers.
Technical Analysis: Is a Reversal Coming?
The analysis of Arbitrum's charts shows an interesting picture. On the weekly timeframe, the price broke through an important resistance in the $0.85 area, consolidating above it. This gave a strong push to buyers and paved the way towards the next target, between $1.05 and $1.10. However, the monthly chart is of even greater importance.
If the current candle closes above $0.92, this will be the first sign of a possible reversal of the global downtrend that has dominated since early 2024. The appearance of the so-called bullish engulfing on the monthly chart is often interpreted as the beginning of a new uptrend. This is particularly relevant considering the backdrop of positive macroeconomic dynamics, the easing of regulatory pressure and the stabilisation of Bitcoin.
What Do The Experts Say?
Analysts note that interest in Arbitrum has grown not only among retail investors, but also institutional investors. The platform is widely used in DeFi and large staking and farming projects are launching new pools based on Arbitrum. In addition, in recent days, the network has seen a significant increase in large transactions, which could indicate a build-up of tokens by so-called 'whales'.
Further strengthening the project is also the Arbitrum team's commitment to the ongoing development of the infrastructure, the implementation of enhancements and the maintenance of high security standards for the protocol. Upgrades planned for the third quarter of 2025 could further increase scalability and simplify integration with other blockchains.
Perspectives And Risks
Despite optimism, experts urge not to forget the high volatility of the market. Technical signals can be misleading in case of abrupt changes in sentiment. Should Bitcoin come under pressure again, this could also affect the altcoins, including ARB. However, if current dynamics hold, Arbitrum has a chance to consolidate above $1 and confirm a long-term trend reversal.
The current situation around Arbitrum could represent a turning point. If the monthly chart confirms the reversal, a new growth phase will open and ARB will be able to strengthen its position as one of the leading Layer 2 solutions.
