Arbitrum Jumps 18% on 1.6M Wallet Boom—Breakout Next?

According to CoinMarketCap’s sentiment tracking tool, Arbitrum ($ARB) is currently ranked as the sixth most bullish crypto asset, with more than 90% of users indicating expectations of a continued price uptrend.

This optimism appears well-founded. Arbitrum has exploded by over 18% in the past seven days, accompanied by a surge in new user activity.

Network User Base Explodes with 1.6M New Wallets

Data from Dune Analytics shows that over 1.6 million new wallets were created on the Arbitrum network between March 3 and April 24. The total number of active addresses has now reached 4.6 million.

Active wallet addresses surge on Arbitrum L2 network/ source: Dune Analytics

Last month alone, the network processed 1.3 billion transactions and created over 4.5 million smart contracts.

These milestones likely contributed to Robinhood’s listing of $ARB earlier this year, greatly enhancing access and liquidity for retail investors who may have been reluctant to use decentralized exchanges.

In addition, Arbitrum Orbit chains are increasingly being used as a liquidity bridge for USD Coin ($USDC) to access protocols such as Hyperliquid, where users trade perpetual contracts via decentralized vaults.

Security Setback: $140K Exploit Reveals $ARB Signature Vulnerability

Despite its recent momentum, Arbitrum has also faced its share of challenges.

On March 10, blockchain security firm CertiK disclosed a serious exploit on the network.

An attacker reportedly exploited a vulnerability in signature verification, resulting in the theft of roughly $140,000 from various smart contracts.

More recently, on April 25, Arbitrum’s efforts to join Nvidia’s Ignition AI Accelerator program were reportedly rejected.

Sources suggest the chipmaker’s decision was based on risk mitigation, with some observers linking it to Arbitrum’s ongoing battle to rebuild credibility.

Despite robust on-chain metrics, the $ARB token is still down more than 80% from its January 2024 peak.

Arbitrum’s ambitions in Web3 gaming are also facing headwinds.

On March 24, discussions emerged within the Arbitrum DAO about possibly revoking funds from its Gaming Catalyst Program (GCP) due to concerns over a lack of progress and transparency.

The GCP had allocated 225 million $ARB tokens (then valued at $468 million) to drive gaming innovation.

However, following a recent token unlock and broader market decline, that allocation has plummeted to around $77 million.

Technical Analysis: Ascending Channel Signals Bullish Continuation Toward $0.378

At press time, the $ARB/$USDT pair is priced near $0.3463. It is testing the upper boundary of the ascending channel for the third time, statistically increasing the probability of a breakout.

$ARB testing resistance levels to trigger breakout/ Source: TradingView

The 20-period simple moving average (SMA) is positioned above the 50 SMA, which is, in turn, above both the 100 and 200 SMAs, indicating a clear bullish trend.

Volume has also increased, with recent candles reflecting rising buying interest.

Should the breakout materialize, the next major resistance zone lies between $0.378 and $0.380, which is historically a supply-heavy area. A successful close above this level could indicate a continuation of the rally.

However, if the price is rejected at resistance, a pullback toward the $0.317–$0.320 region, aligned with the 50 SMA, is likely.

In a deeper correction, $ARB may find stronger support between $0.300 and $0.310, where the 100 and 200 SMAs converge with the channel’s lower trendline.