On Wednesday, March 5, the price of Arbitrum (ARB) shot up by a solid 10%. The reason? A mix of overall market recovery and some game-changing news. As Bitcoin started showing signs of bouncing back from its recent slump, ARB took the lead in gains, outpacing big names like Ethereum (ETH), Solana (SOL), and XRP.
What’s Fueling the ARB Rally?
One major factor behind this surge is speculation that Donald Trump might roll back recently imposed tariffs. But that’s not all—Arbitrum’s new partnership with Skynet has also played a crucial role. Some analysts believe this combination of bullish catalysts could send ARB skyrocketing by as much as 600%.
According to Skynet representatives, they were searching for a blockchain that could handle what most Layer 2 solutions struggle with—massive-scale microtransactions powered by AI, all while keeping fees low and predictable. Enter Arbitrum, which checked all the right boxes.
Skynet’s vision? A future where everyone has their own team of AI agents—not just for executing tasks but with distinct personalities, ensuring privacy and security along the way. “This infrastructure is meant to be the backbone of an AI-driven economy,” says Vishnu Korde, Skynet’s founder.
ARB Outperforms the Market, Attracts Speculators
Looking at the charts, ARB climbed from $0.38 to $0.42 in no time, surpassing the growth of ETH, SOL, and XRP. Moreover, speculative traders poured $23 million into ARB just yesterday, fueling its upward momentum.
The combined hype around Trump’s potential tariff rollback and the Skynet partnership triggered a strong 12% price spike in just 24 hours. However, technical analysis suggests that for this uptrend to continue, fresh capital needs to keep flowing into derivative markets.
Derivatives Market Signals Bullish Sentiment
Arbitrum’s open interest spiked by 22.62% to $113.82 million, while trading volume jumped 15.66% to $439.44 million. These figures indicate that traders aren’t just buying ARB on the spot market—they’re using leverage, a clear sign of bullish conviction.
Further supporting this optimism is the ARB/USDT long-to-short ratio on Binance, which sits at 2.5894. Traders on OKX are even more bullish, with a ratio of 2.89, while Binance’s top traders lean heavily toward buying, with a ratio of 2.7538.
Despite the market being relatively calm, liquidation data shows $376,500 wiped out in the past 12 hours. However, with long and short positions remaining balanced, the risk of a cascading liquidation event remains low.
Is ARB Breaking Out?
All indicators suggest that traders are betting big on ARB’s growth. In fact, the price action is flashing a textbook bullish reversal signal. ARB has just broken out of a falling wedge pattern—a technical setup that often precedes explosive upward moves. If it holds above $0.42, this could set the stage for a long-term price target of $2.80.
Falling wedge breakouts typically lead to powerful rallies because they compress resistance while forming a strong support base. In ARB’s case, the breakout coincides with a surge in volume, with net buying inflows reaching $17.9 million—showing that buyers are clearly overpowering sellers.
What’s Next for ARB?
While a 600% pump to $2.80 might not happen overnight, technical indicators suggest ARB is gearing up to test key resistance at $0.50. If it breaks through and holds, further gains could be on the horizon.
Looking at the MACD indicator, a bullish crossover seems imminent—the blue MACD line is about to cross above the orange signal line. If confirmed, this would reinforce the strength of the current trend, paving the way for sustained upside momentum.
Of course, if the MACD crossover fails, ARB could pull back to $0.38. That’s why doing your own research and assessing risks before investing is always a smart move.
Final Thoughts
All signs point to ARB gaining serious traction, thanks to its partnership with Skynet and strong technical signals. With bullish sentiment surging and traders piling in, ARB might just be positioning itself as a frontrunner in this market cycle. Keep an eye on those key resistance levels—things could get interesting real soon!