Arbitrum [ARB] surprised the crypto market on the 2nd of July with a nearly 5% rally, distinguishing itself in a sea of sideways altcoin price action. This sudden move came after Robinhood announced its plan to expand digital asset offerings for its EU users—specifically by integrating Arbitrum’s Layer 2 blockchain for tokenized stocks, ETFs, and equities. Moreover, the platform revealed it intends to build a custom chain using Arbitrum’s Orbit technology. The announcement immediately triggered bullish sentiment around the ARB token, leading it to outperform most major altcoins within a single trading session.

At the time of writing, ARB was trading at approximately $0.342, up 4.88% over the previous 24 hours. However, trading volume declined by around 30% during the same period, suggesting that while price moved favorably, investor participation remained thin. This divergence between price and volume raised eyebrows, with some market watchers cautioning that the rally could be short-lived unless accompanied by stronger follow-through from buyers.

Despite the low volume, market analysts and social commentators were quick to share optimistic forecasts. One well-known market observer asserted that ARB may never revisit the $0.32 level again, calling current prices a solid accumulation zone. Another analyst went further, predicting that ARB was building enough momentum to eventually reach the $1 mark. These bullish sentiments, widely shared across social platforms like X (formerly Twitter), reflect growing confidence in Arbitrum’s long-term ecosystem potential—especially now that a mainstream trading platform is adopting it for next-generation digital asset offerings.

From a technical perspective, ARB has been consolidating within a descending channel since May 2025. The latest rally has brought the price closer to the upper boundary of this channel, and if buyers continue to exert pressure, the next target lies around $0.37. A confirmed breakout above the descending channel could open the door to a 30–35% rally in the coming weeks, with some analysts projecting upside targets between $0.45 and $0.50.

The bullish structure is further supported by the 50-day Exponential Moving Average (EMA), which ARB has now reclaimed. On a daily timeframe, ARB closing above this key trend indicator suggests a short-term reversal in market sentiment, tilting favor toward the bulls. Historically, such breakouts above the 50-day EMA often precede sustained upward moves, particularly if supported by volume and macro-level ecosystem developments—both of which Arbitrum has recently demonstrated.

On-chain data adds another layer of strength to the narrative. In the past 48 hours, Arbitrum has seen net outflows from exchanges totaling approximately $2.2 million. Notably, the single-day outflow on July 1 alone hit $2.57 million, according to CoinGlass. Such movement typically indicates investors—particularly large holders—are moving their tokens to cold storage, signaling long-term confidence in the asset’s performance. These outflows reduce potential sell pressure on centralized exchanges, often acting as a tailwind for further price appreciation.

Still, risks remain. While the Robinhood announcement provides strong tailwinds, the light trading volume and the possibility of a false breakout should not be ignored. If ARB fails to decisively break out of its descending channel or if Bitcoin and broader market sentiment turn bearish, ARB could see a quick pullback toward the $0.32–$0.33 support zone.

In conclusion, Arbitrum’s 5% rally was fueled by strong fundamental news from Robinhood and supported by encouraging technical indicators and on-chain data. However, the lack of significant trading volume during the move may serve as a cautionary signal for short-term traders. For now, the bulls appear to have the upper hand, but they must defend recent gains and break key resistance levels to confirm a lasting uptrend.