- ARB is trading roughly 96% below its 2024 all-time high of $2.425, now sitting inside the $0.06–$0.09 demand zone.
- Analysts identify a Wyckoff Phase C accumulation structure forming, with seller exhaustion and demand absorption signals active.
- A confirmed break above $0.23 signals the first bullish structure shift, with cycle targets extending toward $5.00 per token.
Arbitrum’s native token, ARB, is trading near historic lows after a prolonged decline from its 2024 peak. The asset has lost roughly 96% of its value over two years.
Regardless of the downside, technical analysts are signaling the present price area as a possible long-term entry point. The interest of the traders is accumulating silently within the range of $0.06 and 0.09.
A 96% Discount Puts ARB Inside a Key Demand Zone
ARB reached its all-time high of $2.425 in 2024 before entering a sustained downtrend. It is now trading near $0.08, deep inside what analysts call a high-timeframe demand block. This kind of discount rarely appears on leading Layer 2 assets.
Crypto analyst Crypto Patel pointed out that ARB is sitting “at the bottom of a multi-year descending channel inside a HTF demand block.” This level has historical significance, with prior capitulation wicks forming nearby. Price has been compressing sideways following the most recent sharp drop.
The $0.06 to $0.09 range is being treated as a structural accumulation zone by traders tracking long-term setups. Volume absorption at this level suggests that sellers may be running out of momentum. The compression in volatility further supports the idea that a base could be forming.
Wyckoff Structure Adds Technical Weight to the Setup
Beyond the price discount, analysts are noting characteristics of a Wyckoff accumulation cycle forming on ARB’s chart. Phase C, which typically marks the final shakeout before a recovery, appears to be in play. This is one of the more reliable classical frameworks used to identify cycle lows.
Crypto Patel identified ARB as a “Wyckoff Phase C / Early Phase D Candidate” with demand absorption signals active. These signals point to institutional-style accumulation at the current price range. The pattern mirrors setups seen in other assets before major recoveries.
Seller exhaustion is another element analysts are citing at this level. When selling volume dries up without a corresponding price breakdown, it often signals a shift in market control. Traders are watching whether buyers can hold the $0.06 floor through this period.
Defined Price Levels Map Out the Road Ahead
For traders watching ARB, two levels stand out as critical confirmation points. A break above $0.23 would mark the first break of structure in favor of buyers. A move above $0.49 would signal a full trend regime change, according to the analysis.
Crypto Patel outlined a multi-stage target path reaching $1.20, then $2.42, and finally $5.00 on a full cycle expansion. These levels represent prior resistance zones and longer-term projection targets. A $5.00 price would reflect a gain exceeding 5,000% from current levels.
On the downside, $0.06 remains the invalidation level for this entire accumulation thesis. A sustained close below that level would void the current technical structure. Traders are using it as a hard reference point for managing risk.
Confluence of Signals Makes the Zone Hard to Ignore
What separates this setup from a simple price dip is the stacking of multiple technical confluences. Channel support, historical wick lows, volume absorption, and volatility compression are all converging at the same zone. That combination is drawing attention from technically-driven traders.
ARB is a high-beta asset, meaning it tends to move sharply when broader crypto market conditions shift. This amplified sensitivity works in both directions, but it also creates outsized opportunity during recovery cycles. The current discount reflects maximum pessimism, which is often where setups develop.
Crypto Patel described the current zone as one where “smart money accumulates when charts look the worst.” No directional move has been confirmed yet. Traders are waiting on structure confirmation before taking larger positions.
Source: https://www.livebitcoinnews.com/arbitrum-at-96-discount-the-setup-traders-are-watching-closely/
