Arbitrum (ARB) appears to be building significant momentum for a potential price rally, driven by a confluence of strong on-chain activity, positive technical indicators, and favorable market sentiment. The network's foundational metrics and market behavior collectively point towards a period of sustained growth and a possible breakout to new price targets.
On-Chain Momentum and Technical Breakout
Arbitrum's network is experiencing a surge in engagement, with Daily Transactions jumping by over 18% to exceed 2.5 million, while Active Addresses remain stable at 371.30K, indicating robust user retention. This rising activity, coupled with concentrated liquidity, provides a solid foundation for price appreciation. Technically, ARB has successfully broken out of a prolonged consolidation phase, establishing clear upward momentum. The DMI indicator reinforces bullish control, signaling that buyers are actively pushing the price towards the immediate resistance zone of $0.61–$0.64, with a potential target of $0.75 if the current momentum holds.
Accumulation Trends and Balanced Trader Sentiment
Further supporting this bullish outlook are persistent negative Netflows from exchanges, with a recent print of –$553.87K. This consistent outflow suggests that ARB tokens are being moved into private wallets for long-term holding rather than being sold, a trend typically indicative of accumulation and reduced selling pressure. In the derivatives market, ARB's Funding Rate stands at a steady +0.009%, showing cautious optimism among leveraged traders. This balanced positioning suggests that the market is leaning long without becoming excessively bullish or overheated, providing a healthier and more sustainable base for future price appreciation. The combination of growing on-chain usage, a clear technical breakout, significant accumulation, and restrained bullishness in derivatives paints a compelling picture for Arbitrum. The network's resilience and sustained demand suggest ARB is well-positioned for a decisive rally, with the key challenge now for buyers to convert this momentum into new price milestones.
