ARB Surges 12% After Robinhood Listing

• ARB jumped 12% after listing on Robinhood, with minimal sell pressure from exchanges.
• A bullish divergence on the daily chart suggested the recovery could be extended.

Arbitrum (ARB) crypto pumped 12% following its listing on Robinhood, providing new liquidity and trading opportunities for the Layer 2 token. The token rose from $0.378 to $0.435, almost a 15% surge, before settling at a 12% increase as of the latest updates.

Despite this double-digit bounce, ARB is still down 65% from its December highs of $1.2, raising the question: Can the Robinhood listing encourage a sustainable recovery?

Arbitrum Crypto Accumulation

According to Coinglass data, approximately $7 million worth of ARB was withdrawn from exchanges this week (indicated by red bars). Over the past three weeks, about $20 million worth of ARB has been moved off exchanges, a bullish sign despite the recent price increase.

Generally, a significant increase in netflows (exchange selling pressure, shown in green) often occurs at local peaks. The negative netflow indicates reduced sell pressure, potentially further fueling ARB’s recovery outlook.

Interestingly, one of the largest ARB whale cohorts (owning 100 million – 1 billion tokens, marked in yellow) increased their holdings from 1.96 billion ARB to 2.06 billion coins, accumulating an impressive 40 million ARB in the last few days. This strong accumulation could bolster ARB’s recovery chances, although there has been increased selling from another cohort holding 10 million – 100 million ARB.

Short-term prospects might suffer if broader market sentiment turns negative.

ARB’s Bullish Divergence

On the daily chart, ARB displayed a bullish divergence, where the RSI increased while the price made lower lows. This pattern suggests a potential price reversal upwards, indicating the possibility of continued upward momentum for ARB.

However, traders should be cautious of resistance just below $0.5, a crucial support level from late 2024 that was recently breached. If ARB can decisively break above this sell zone, it may strengthen the asset’s recovery trajectory.