Arbitrum-linked wallets transferred 22 million ARB worth approximately $2.3 million to Coinbase during the last 24 hours, drawing attention to potential supply entering the market.
Data showed that one wallet still held 55.89 million ARB valued at $5.87 million, while Arbitrum:Gnosis retained 85.22 million ARB worth $8.94 million. However, the broader exchange picture pointed in a different direction.
Over the past seven days, nearly $11 million worth of ARB left centralized exchanges, indicating that investors continued moving tokens into self-custody. This contrast highlighted a growing tug-of-war between possible distribution from team-linked wallets and steady accumulation from market participants.
Can ARB defend its final support?
Price action weakened considerably after ARB fell below its ascending channel, which had guided the recovery from March through early May.
Following the breakdown, sellers pushed the token toward the critical $0.1006 support level, where ARB traded near $0.1028 at press time. The decline also placed the market well below the $0.1164 resistance zone and significantly beneath the major barrier at $0.1447.
The MACD line remained below the signal line, while the histogram stayed negative despite showing reduced downside pressure compared to earlier readings.
Although selling activity eased slightly, buyers had not yet reclaimed key levels. Therefore, ARB remained vulnerable unless demand returned around current support levels.
ARB funding shifts reveal defensive positioning
At the time of writing, derivatives traders adopted a more cautious stance as the OI-Weighted Funding Rate dropped to -0.0051%. This negative reading indicated that short sellers paid longs, reflecting growing bearish conviction across perpetual futures markets.
Such conditions often emerge when traders anticipate further downside or attempt to hedge against market uncertainty.
In this case, the funding structure aligned with the recent breakdown from the ascending channel and the inability of ARB to recover overhead resistance levels. Even so, persistently negative Funding Rates sometimes create opportunities for abrupt reversals when bearish positioning becomes overcrowded.
Should support continue holding near $0.1006, excessive short exposure could increase the probability of a relief rally as traders unwind defensive positions.
Traders wait as liquidations remain limited
Liquidation activity stayed relatively subdued despite the recent decline, suggesting that traders largely avoided aggressive leverage.
The latest data showed total long liquidations of approximately $40.66K, compared with only $26.71K in short liquidations. This imbalance reflected the pressure that buyers faced during ARB’s slide toward support. Nevertheless, the figures remained modest when compared with previous liquidation spikes seen earlier this year.
Such muted activity often signals hesitation rather than strong directional conviction. Because neither bulls nor bears faced significant forced closures, the market lacked a catalyst for sharp volatility.
A decisive move below $0.1006 would likely increase liquidation pressure, while a recovery above $0.1164 could force defensive short positions to exit.
Conclusively, Arbitrum faced conflicting signals as team-linked wallets moved 22 million ARB to Coinbase while broader exchange balances continued declining. Price structure weakened after the channel breakdown, and negative Funding Rates reflected cautious sentiment.
However, exchange outflows suggested that accumulation demand remained active. If buyers successfully defend the $0.1006 support zone, ARB could stabilize and challenge higher resistance levels.
Otherwise, continued weakness would increase downside risks in the near term.
Final Summary
- Team-linked ARB deposits increased supply concerns despite continued exchange outflows.
- ARB traded near major support as bearish positioning gained strength.