Arbitrum’s ARB token is showing a classic bullish reversal setup after months of decline, with a cup and handle pattern indicating a potential 65% upside towards $0.22. But the breakout attempt faces a big near-term test: 92.65 million ARB tokens opened in mid-May worth roughly $11-12 million, an event that could inject new selling pressure just as the token challenges key resistance near $0.13.
ARB cup and handle tips at 65% up next
Arbitrum is showing early signs of a bullish reversal after months of downtrend, with the daily chart forming a potential cup and handle pattern.
The “cup” developed between February and April after the ARB fell towards the $0.08-0.09 range and then gradually recovered towards the $0.13 resistance area. This level now acts as the neckline of the pattern.
Since then, ARB has backed off a bit, creating the “handle” part of the setup. This is usually a short consolidation phase where weaker buyers exit before a potential breakout. The structure remains constructive as long as the ARB remains above the $0.118-$0.12 support area and its 50-day moving average.
A decisive daily close above $0.13 will confirm the breakout. Based on the depth of the cup, the measured upside target is near $0.21-$0.22, implying ~65% gains from current levels near $0.127 by June.
Momentum also supports a bounce case. The daily RSI is holding near 59, above the neutral 50 line, indicating that buyers still have control despite the recent pause.
A drop below the handle support could weaken the pattern and expose the ARB to a retest of the $0.10 area.
Arbitrum will unlock 92.65 million ARB tokens in May
One of the main risks of a bullish setup is Arbitrum’s upcoming token unlock event scheduled for mid-May.
About 92.65 million ARB tokens, worth approximately $11-12 million at current prices, are expected to be in circulation as part of the project’s ongoing team and investor vesting schedule. The issuance will expand the circulating supply of ARB by approximately 1-2%.
Opening a token often creates short-term selling pressure because early investors or insiders may choose to take profits after previously illiquid holdings become tradable. In the case of ARB, timing is particularly important given that the token is already testing significant technical resistance near $0.13.
If the unlock triggers immediate selling, the ARB may fail to confirm a cup-and-handle breakout and instead slide below handle support near $0.12. Such a move would weaken the bullish momentum and increase the possibility of a drop towards the $0.10 support area.
