Arbitrum [ARB] has broken below a key support zone that buyers had defended for nearly three months, according to reports from AMBCrypto. The March support zone at around $0.860 acted as a reference point for the bullish outlook, but this time the selling pressure proved too strong. The move comes as the broader crypto market remains under pressure, dragging many altcoins lower. The token is now trading below key EMAs, another sign that momentum remains with the sellers. Losing a long-standing support level is rarely a good sign for traders, as it indicates a potential shift in market sentiment.
Despite the weakness, large transactions have increased noticeably over the last 24 hours, as reported by AMBCrypto. The question remains whether whales are buying the dip or simply repositioning during the volatility. In the last 24 hours alone, network trading volume surged by 23% to 122 million, showing that market participants are actively responding to the latest price action. The recovery volume is now entering the market, but a large volume is required to offset the bearish trend. Right now, the price isn't giving a clear answer to whether whales are accumulating or simply repositioning their positions.
According to recent derivative data from AMBCrypto, long positions account for 70% of the total exposure in the market. The long dominance affirms that the surging whale and trading activity is aligned to the bulls, as they pull out their last card to counter the current aggressive bearish pressure. This positioning suggests that despite the current weakness, institutional players remain optimistic about the token's potential recovery, with the bulls trying to counter the current bearish pressure.
For bulls, reclaiming the lost support zone would be an important first step toward potential recovery, as reported by AMBCrypto. Until that happens, the market is likely to remain cautious. The growing presence of whales means traders will be watching closely for signs of a reversal, as the current trend still points lower despite rising volume and whale activity suggesting something is brewing in the market. As it stands, ARB finds itself at a critical point where sellers have won the latest battle, but the growing whale presence provides some hope for a potential reversal.
