Is Arbitrum (ARB) about to explode? The technical model reveals a 280% increase.

Arbitrum and the native token ARB are facing an opportunity for a strong bounce back, especially in the context of the altcoin season officially starting. The liquidity flowing into the Ethereum network is increasingly large, signaling a vibrant phase ahead.

Arbitrum is currently among the top Layer 2 networks of Ethereum. According to data from CoinMarketCap, Arbitrum ranks second in the Layer 2 list by market capitalization, just after Mantle. In the past 24 hours, the trading volume on Arbitrum has exceeded 800 million USD. This puts the network in a favorable position to take advantage of the growth momentum from Ethereum in the current altcoin season.

The latest data shows that the Arbitrum network has started to show signs of vibrant activity again.

Arbitrum trading activity confirms growth momentum

The increase in activity on the Ethereum network often leads to stronger trading volumes on Layer 2 networks. Over the past 6 months, activity on Arbitrum has doubled, accurately reflecting the market's vibrancy during the same period.

Trading chart on Arbitrum | Source: ArtemisThe surge in network activity is also clearly reflected in Arbitrum's application revenue. While the lowest revenue in a week in March was only around 604,000 USD, in the last 4 weeks, this figure has consistently maintained nearly 4 million USD/week.

Other growth indicators also show that Arbitrum is undergoing a "bounce back" in terms of activity. For example, the stablecoin market capitalization on the network has increased from 1.21 billion USD in May 2025 to 3.9 billion USD at the present time.

Stablecoin market cap and TVL chart of Arbitrum | Source: TradingViewTotal value locked (TVL) has also recorded a strong breakout trend in recent months. From a low of 1.9 billion USD in April 2025, TVL has increased to 3.92 billion USD, setting a new historical peak.

ARB breaks through the support resistance – What lies ahead?

The bounce back in activity on Arbitrum seems to have started to directly impact the native token ARB. After confirming the bottom zone in June, ARB has seen a significant increase. Notably, this coin has successfully broken through a 5-month resistance level, which had held back the price from February to June.

The breakout occurred in the second week of August, and since then ARB has maintained a strong upward momentum. At the time of writing, ARB is trading at 0.55 USD, up over 100% in the past 3 months.

So, how far can ARB go in the coming months? The price chart shows the formation of the "cup and handle" pattern that started in January 2024.

ARB Price Chart | Source: TradingViewAccording to this model, ARB may be entering the second half of an upward cycle. If the support zone from March to June is indeed the bottom of the model, then the price of ARB may soon enter a phase of strong bounce back. This model even suggests the potential for ARB to increase by up to 280% in the coming months, bringing the price back to the 2.25 USD range.

The probability of this scenario occurring is assessed to be quite high, especially as Ethereum has clearly dominated this altcoin season. Additionally, recent developments further reinforce the potential of stablecoins in driving network usage.

Earlier this week, the European Union (EU) revealed its plan to issue a neo stablecoin pegged to the Euro on Ethereum or Solana. If this comes to fruition, network activity could explode even further, especially in the context of increasingly strong institutional capital inflows.

All the above factors indicate that Arbitrum can definitely become a noteworthy project in the coming months. The ARB coin seems ready to benefit as liquidity continues to flow into other altcoins.

Justin