• Arbitrum starts DRIP Epoch 3 as ARB price moves toward $0.56.
• RSI and MACD show strength while traders watch key VWAP support zones.
• Futures trading volume rises, but open interest falls.

Arbitrum has launched the third epoch of its DRIP program at a time when the ARB token is showing early signs of recovery. This Layer-2 scaling solution provides new incentives for looping strategies. Technical indicators and derivatives data suggest a possible move towards $0.56.

Ecosystem Growth Through DRIP

Users can deposit Ethereum or stablecoins through the DRIP initiative from Entropy Advisors. This, in turn, lets them borrow against these digital assets and loops their positions for higher yields.

This system aims to improve on-chain liquidity and engagement within the Arbitrum ecosystem. It is the latest epoch in a series of efforts to increase DeFi participation on the network.

Over the last few years, Arbitrum has remained one of the top Layer-2 platforms in terms of activity and total value locked. This launch demonstrates the network trying to gain ground against competitors such as Optimism and zkSync by introducing more user-friendly financial tools.

Fibonacci Levels Guide Recovery

The price of ARB is back above September lows and near $0.453. Fibonacci retracement analysis shows that the token climbed above 0.236 to $0.427.

Short-term resistance lies around $0.449 and $0.45, with upside potential toward $0.50. If ARB can keep momentum above that zone, the next target is $0.56. This corresponds to prior resistance levels from early September.

The VWAP levels clarify price dynamics further. The current VWAP readings cluster is between $0.438 and $0.449. This is a liquidity area that ARB must defend. A breakout above this range may signal bullish strength. A rejection, in turn, might reshape the price direction towards $0.43 or even $0.40.

Fib. and VAWP. Source: TradingView

Also Read | Arbitrum (ARB) Price Rebound: Analyst Targets $1.08 Amid Key Support Bounce

Both RSI and MACD Signal Bullish Momentum

Momentum indicators show cautionary signals. A rising Relative Strength Index (RSI) is above 70. It is overbought but also indicates buying pressure.

RSI above 60 usually signals bullish trends, but traders must be wary of pullbacks. MACD supports the positive momentum outlook.

This indicator is bullish as the MACD line crosses above the signal line. This crossover indicates improving trend dynamics underlying recent buying strength. As long as momentum remains intact, buyers could push the token’s price higher in the short term.

RSI and MACD. Source: TradingView

Futures Volume and Open Interest

According to Coinglass, the derivatives market is mixed. Trading volume for ARB futures rose 18% to $478 million in the past 24 hours. But the open interest declined 0.24% to $342 million.

 This shows that trade volume has been up, but traders have trimmed or closed positions. This dynamic suggests that this latest upward move could be triggered more by fresh volume than long-term positioning. Yet, the spike in trading activity suggests active participation around the current rebound, rather than a low-liquidity rally.

Source: Coinglass

A Key Driver

ARB will gain and retain its profits based on conditions in the broader market. The primary influence is Bitcoin. If Bitcoin falters, other altcoins might not perform well.  

Although the RSI indicates it is overbought, Arbitrum appears to be in the process of recovering from the massive declines in September.  

Also Read | Ethereum Classic (ETC) Eyes $28–$32 Resistance as Market Sentiment Turns Positive