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Is Arbitrum (ARB) Poised for a Breakout? Key Pattern Formation Suggests So!

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Date: Fri, Nov 07, 2025 | 12:00 PM GMT In the cryptocurrency market, both Bitcoin (BTC) and Ethereum (ETH) are trading in the red today with ETH is down by near 4% decline. However, despite the broader weakness, some notable altcoins are showing signs of strength — including Arbitrum (ARB). $ARB is trading in the green with a modest intraday gain, but more importantly, its technical setup is showing signs of a possible bullish reversal. The chart now reveals a key pattern formation that could set the stage for an upside breakout in the coming sessions.

Source: Coinmarketcap Descending Broadening Wedge Pattern in Play On the 4-hour chart, ARB has been trading within a descending broadening wedge — a bullish reversal pattern that often forms during corrective phases and signals increasing volatility followed by an upward breakout. During the latest pullback, ARB revisited the lower boundary of the wedge near $0.2344, a level that has repeatedly acted as a critical support zone. Buyers stepped in aggressively at this area, triggering a rebound that pushed the token back toward $0.27, placing it close to the wedge’s upper resistance trendline.

Arbitrum (ARB) 4H Chart/Coinsprobe (Source: Tradingview) This tightening price action near the top boundary indicates rising momentum and growing pressure for a potential breakout. What’s Next for ARB? If buyers manage to break ARB above the upper wedge trendline and reclaim the 200-day Moving Average near $0.33, it would signal a confirmed bullish breakout. In that scenario, the next logical technical target lies near $0.3973, which represents approximately a 46% upside from current price levels. However, if ARB faces rejection at the resistance zone, the token may continue to consolidate within the wedge. In such a case, $0.2534 remains the key short-term support to watch. For now, ARB’s technical structure looks constructive. With the descending broadening wedge still intact and buyers showing strength at support, the setup suggests that a meaningful breakout attempt could soon unfold — especially if overall market sentiment improves through November. Disclaimer: The views and analysis presented in this article are for informational purposes only and reflect the author’s perspective, not financial advice. Technical patterns and indicators discussed are subject to market volatility and may or may not yield the anticipated results. Investors are advised to exercise caution, conduct independent research, and make decisions aligned with their individual risk tolerance.

ARB14.05%
BTC1.65%
ETH3.25%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
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