Arbitrum (ARB) is trading at $0.12 with its relative strength index at 19.86 — deep in oversold territory — as analysts project a potential recovery to the $0.19-$0.25 range within the next four to six weeks.
What Happened: Oversold Token Draws Forecasts
Analyst Darius Baruo projected on Feb. 4 that ARB could reach $0.19-$0.25 in the medium term, with short-term targets of $0.14-$0.15. Separately, analyst Felix Pinkston suggested the token could see 56-75% gains, targeting the $0.25-$0.28 range despite current bearish momentum.
The token's technical indicators reinforce the case for a potential bounce.
The MACD histogram sits at neutral, suggesting bearish momentum may be fading, while Bollinger Bands analysis shows ARB hugging its lower band at $0.11, with the middle band at $0.17 as an initial recovery target.
Moving averages remain bearish across all timeframes. The 7-day simple moving average at $0.14 serves as immediate resistance, and the 200-day SMA at $0.33 indicates how far the token has fallen from longer-term trends.
A break below the critical $0.11 support level would undermine the recovery thesis and could push ARB toward $0.10.
Also Read: Analysts Eye $730 As BNB's Last Stand Before Mid-$600s
Why It Matters: Layer 2 Under Pressure
On-chain data from major analytics platforms shows Layer 2 scaling solutions like Arbitrum continue to post strong fundamental metrics despite the price decline, according to the report. That disconnect between network activity and token price is what underpins the bullish forecasts.
Still, the broader cryptocurrency market remains volatile. Risk factors include potential Bitcoin (BTC) weakness, regulatory concerns affecting Layer 2 solutions and technical issues within the Arbitrum network itself.
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