Arbitrum (ARB) Drops 2.19% After Failed Breakout Above $0.49

Arbitrum (ARB) experienced a notable price correction after failing to sustain a breakout above the $0.49 resistance level. The cryptocurrency briefly reached an intraday high of $0.49 on Friday but was quickly rejected, leading to a downward movement. At the time of reporting, ARB was trading at $0.4557, reflecting a 2.19% daily loss. This failed breakout marks a significant short-term reversal, pushing the asset back into a consolidation pattern below the $0.46 mark.

The decline in ARB's price was accompanied by a reduction in trading volume, which dropped by 11.67% to $637.91 million. This decrease indicates a slowdown in buying activity and suggests that sellers are regaining momentum. Despite this dip, the volume-to-market cap ratio remains at 27.26%, indicating relatively active trading. ARB's market capitalization currently stands at $2.34 billion, supported by a circulating supply of 5.15 billion tokens out of a total supply of 10 billion tokens. The fully diluted valuation is at $4.55 billion, with investor focus remaining on upcoming unlock schedules and broader Layer 2 ecosystem developments.

Technical indicators continue to show bullish momentum for ARB. The Relative Strength Index (RSI) is positioned at 72.09, staying above its moving average of 63.27. This reflects continued buying pressure despite the asset being in an overbought zone. The Moving Average Convergence Divergence (MACD) indicator also remains bullish, with the MACD line at 0.0313 and the signal line at 0.0218. A strengthening green histogram suggests that underlying momentum is still intact, supporting the potential for renewed upward movement if price support remains stable. The current MACD setup has persisted since early July, indicating a possible recovery if current support levels manage to hold.