Arbitrum has formed a falling wedge with lower highs and higher lows now compressing price at $0.41.
If the price moves above $0.45 with strong volume this could confirm a new bullish pattern for $ARB.
The wedge has been forming since 2024 and a breakout may signal the start of a strong trend reversal.
Arbitrum ($ARB) is showing signs of a breakout following an extended downtrend, with chart data pointing to a potential trend reversal. The weekly chart reveals a descending wedge pattern nearing its apex, with price action pressing against resistance. A breakout to the upside may soon unfold as the structure tightens and momentum builds.
Source: X
Posted by @CryptoAnup on May 13, 2025, the visual chart shared on Binance (ARB/USDT) shows a series of declining highs and rising lows. These movements have created a falling wedge—a bullish formation often linked with strong upward moves after prolonged compression. The chart clearly identifies multiple touchpoints on both trendlines, offering a technical basis for a major upcoming move.
As the price sits near $0.41, the asset appears to be coiling, with bulls anticipating a breakout from the wedge structure. Traders are closely watching for volume spikes or confirmation candles that may push the token above the trendline resistance.
Descending Wedge Structure Nearing Breakout Point
The descending wedge pattern forming on the Arbitrum chart spans nearly one year, beginning from its 2024 highs near $2.50. Several failed rallies marked by red arrows define the top boundary, while green arrows at the base represent support retests. This structure has now tightened into a narrow apex where breakout probability increases significantly.
Each time price touched the wedge support, it bounced back with low momentum, reflecting weakening selling pressure. As lower highs form over time, buying demand begins to consolidate near support, building potential energy for a reversal. The current price at $0.41 rests just under the wedge resistance, suggesting breakout conditions may already be forming.
The weekly time frame indicates decreasing volatility within the pattern. Price compression in such formations often precedes a strong breakout move. Traders are anticipating a breach of the descending trendline to confirm bullish sentiment and begin targeting upside levels.
Volume and Structure Align With Bullish Setup
Volume is a crucial confirmation signal in wedge breakouts. If Arbitrum closes above the wedge with increased volume, a sustained rally could follow. The current chart shows signs of rising interest as the pattern matures, increasing the likelihood of a clean technical breakout.
While the price remains below $0.50, a close above $0.45 could confirm the breakout, drawing more buyers to the chart. The blue arrow on the chart shows projected movement, giving a directional cue toward a breakout setup. Technical traders are now focused on price behavior near that threshold.
The price zone above $0.50 has previously acted as resistance, making it a short-term target. Breaking that could open paths toward higher levels such as $0.75 or $1.00. Until then, all eyes remain on the wedge breakout setup.
Can Arbitrum Break the Wedge and Reverse Its Yearlong Trend?
As Arbitrum approaches the end of its falling wedge, the key question emerges: will price break out or continue the decline?
Traders are closely watching price interaction with the upper wedge line. If confirmed, it could signal the end of a multi-month bearish cycle. A breakout would reset structure and potentially shift Arbitrum into a bullish cycle.
