"ARB Plunges 50% in Month: Can Bulls Reclaim $0.515?"

Arbitrum (ARB), a layer-2 scaling solution for Ethereum, has been experiencing a challenging period since mid-December, with its price performance declining significantly. The trend has since turned super bearish, following consecutive drops at the start of the year. The latest downturn in the crypto market has seen ARB shed over 50% of its value in just a month, and it is currently trending bearishly on the daily timeframe after rejecting a yearly low a few days ago.

ARB's struggles began when it failed to push above the $1.3 level late last year. Losing momentum, it broke below the crucial $1 level and closed the year at $0.75. The new year started with a recovery, but a sharp rejection halted the progress, leading to another drag down. The bearish trend persisted throughout January, with the price plunging heavily to a year-low of $0.345.

Despite registering a major loss in the past week, ARB is still demonstrating signs of weakness on the daily chart. It is currently trading at critical support and is on the verge of breaking lower. A continuous drop in volatility could exacerbate the losses before a potential recovery.

As ARB negotiates the $0.45 support, the closest level for a test is $0.4, followed by the recent $0.345 low, which is the lowest level in the past year. Below this level lies the key $0.3 support. The $0.515 level recently stopped the bulls, and if they push back above it, the higher resistance levels to consider are $0.613 and $0.75.

Key Resistance Levels: $0.515, $0.613, $0.75

Key Support Levels: $0.4, $0.345, $0.3

Spot Price: $0.45

Trend: Bearish

Volatility: High