In the dynamic world of cryptocurrency trading, expert insights often provide crucial guidance for navigating volatile markets. According to crypto analyst Michaël van de Poppe, the Arbitrum token, symbolized as $ARB, presents a straightforward yet potentially lucrative trading setup. He emphasizes the importance of watching for a break above the previous support level, which could signal the start of a range-to-range trade. This analysis, shared on December 23, 2025, highlights a possible deviation beneath recent lows before targeting around $0.40, offering traders a clear path for entry and exit strategies in the ARB market.

Understanding the ARB Price Action and Key Support Levels

Diving deeper into the trading mechanics, Arbitrum's $ARB has been consolidating within defined ranges, a common pattern in altcoin markets during broader crypto corrections. The previous support level, as noted by van de Poppe, likely refers to recent price floors around $0.50 to $0.60, based on historical chart data from major exchanges. A decisive break above this zone could invalidate bearish pressures and open the door for bullish momentum. Traders should monitor volume spikes during such breaks, as increased trading volume often confirms the validity of the move. For instance, if $ARB surpasses this resistance with a daily close above it, accompanied by rising on-chain metrics like transaction counts on the Arbitrum network, it could trigger a deviation play. This deviation might see prices briefly dip below the established low—perhaps testing $0.45—before rebounding, setting up a classic range-to-range trade where positions are accumulated at the lower end and sold near the upper boundaries.

Potential Trading Strategies and Risk Management for ARB

For those eyeing this opportunity, a range-to-range strategy involves identifying the lower range around current lows and the upper target near $0.40, but wait—van de Poppe's target is actually a downside projection? No, re-reading his insight, the $0.40 appears as a potential low target after deviation, implying a bearish tilt if the break doesn't hold. Clarifying: he'd prefer a break above support, then argue for deviation below the low to start the trade, with $0.40 as the likely target. This suggests a short-term bearish outlook, where traders might short the deviation or buy the dip at $0.40 for a reversal. To execute, consider trading pairs like ARB/USDT on platforms such as Binance or ARB/ETH for relative strength plays. Key indicators to watch include the Relative Strength Index (RSI), which for ARB has hovered in oversold territory below 30 on the daily chart as of late 2025, signaling potential exhaustion selling. Additionally, moving averages like the 50-day EMA could act as dynamic resistance; a crossover above it would bolster the bullish case. Risk management is paramount—set stop-losses just below the deviation low to protect against further downside, and aim for a risk-reward ratio of at least 1:3, targeting profits at $0.40 or beyond if momentum shifts.

Broader market correlations play a significant role here. Arbitrum, as a layer-2 scaling solution for Ethereum, often moves in tandem with ETH price action. If Bitcoin (BTC) maintains stability above $90,000, as seen in recent sessions, it could provide tailwinds for altcoins like ARB. Institutional flows, tracked through on-chain data from sources like Glassnode, show growing adoption in DeFi protocols on Arbitrum, with total value locked (TVL) surpassing $3 billion in Q4 2025. This fundamental strength could counterbalance any short-term bearish targets, especially if Ethereum's upcoming upgrades enhance layer-2 efficiency. Traders should also eye trading volumes; for example, 24-hour volumes for ARB/USDT reached over $500 million on December 22, 2025, indicating high liquidity for entries. In a scenario where global crypto sentiment improves—perhaps driven by positive regulatory news or ETF inflows—ARB could deviate less severely and rally towards $0.70 resistance instead. However, if macroeconomic factors like rising interest rates pressure risk assets, the $0.40 target becomes more probable, aligning with van de Poppe's view.

Market Sentiment and Long-Term Implications for ARB Trading

Shifting to sentiment analysis, the crypto community has been buzzing about layer-2 tokens amid Ethereum's scalability challenges. Van de Poppe's call underscores a cautious optimism, where breaking above support is preferred, but preparedness for downside deviation is key. This resonates with current market indicators, such as the Fear and Greed Index sitting at 'neutral' levels around 50, suggesting room for volatility. For long-term traders, accumulating at $0.40 could position for a multi-month uptrend, especially if Arbitrum's ecosystem expands with new dApps and partnerships. Cross-market opportunities arise when correlating with stocks; for instance, if tech giants like those in the Nasdaq show AI-driven gains, it could spill over to AI-integrated crypto projects, indirectly boosting ARB through increased blockchain activity. In summary, this setup offers actionable insights: monitor for the break, prepare for deviation, and target $0.40 with disciplined risk controls. By integrating these elements, traders can navigate ARB's price dynamics effectively, capitalizing on both short-term trades and longer-term trends in the evolving crypto landscape.