Is ARB’s Drop Below $0.25 Just a Deviation? Ecosystem Growth Suggests a Range Reclaim Toward $0.40

TLDR:

• ARB price remains near the $0.21–$0.25 support band, showing reduced volatility and early signs of seller exhaustion.

• A move back above $0.25 may confirm a deviation and open a range-to-range advance toward the key $0.40 resistance zone.

• Weekly chart structure displays tapering volume and compressed candles, supporting a possible stabilization phase after a long decline.

• Arbitrum now leads Aave’s Layer 2 markets with over $2B in size, driven by growing ETH-based liquidity across the ecosystem.

ARB continues to trade near the lower end of its multi-week structure, yet ecosystem activity shows steady acceleration. 

While altcoins remain under pressure, Arbitrum has seen rising traction across decentralized finance, creating a contrast between market sentiment and network performance. Price action on the weekly chart suggests a stabilization phase, even as the asset trades under the $0.25 boundary.

The support zone between $0.21 and $0.25 has repeatedly absorbed sell-offs and continues to show signs of firmness.

Candle structures have narrowed and volatility has eased, which often occurs when downward momentum slows. As the token holds this area, market participants are assessing whether the recent breakdown represents temporary displacement rather than a structural shift.

ARB’s Technical Structure Points to a Possible Range Reclaim

Michaël van de Poppe noted that the current move under $0.25 resembles a deviation from the broader range rather than renewed weakness. 

According to his view, a return above that threshold could open the path toward a range-to-range advance targeting $0.40. Market behavior near the weekly support cluster appears consistent with this interpretation, as price continues to grind sideways after an extended decline.

Volume conditions also align with a potential base-building phase. Trading activity has tapered, and the chart displays small-bodied candles with wicks on both ends. 

These patterns signal that sellers may be losing control, allowing buyers to re-enter gradually. If the token confirms a reclaim of the former range, $0.40 stands as the next major barrier, aligned with earlier breakdown levels and the declining weekly moving average.

Beyond that juncture, the chart carries a broader target zone between $0.80 and $0.95. 

This region reflects previous distribution, and it may attract heavier profit-taking if the market shifts toward recovery. Until then, holding the current support remains critical for preventing renewed downward pressure.

Expanding Ecosystem Activity Reinforces Network Stability

While price remains compressed, ecosystem indicators continue to strengthen. CryptoBusy reported that Arbitrum is now the largest Layer 2 network on Aave, exceeding $2B in market size. 

This expansion was driven mainly by WETH and ETH-based assets, including rETH and ezETH, which added about $450M over the month.

Such liquidity growth contrasts with the subdued price environment. Network engagement continues to rise, positioning Arbitrum as a core venue for ETH-centric activity within DeFi. 

This momentum reinforces the platform’s underlying stability and provides broader context as investors monitor the technical structure.

Additionally, ARB generated $HYPE in DEX volume after flipping the $0.21 area, indicating sustained user activity despite the market downturn. 

As support continues to hold and the ecosystem expands, attention remains centered on whether the asset can reclaim the $0.25 range and set up a move toward $0.40.