ARB Tanks 10% Post Parabolic Rally, Early Backers Dumping

After a sharp 17% surge on June 30 driven by partnership speculations, Arbitrum’s native token ARB ARB $0.33 24h volatility: 12.9% Market cap: $1.62 B Vol. 24h: $636.77 M has retraced over 10%, currently trading around $0.32, down almost 5% in the last 30 days.

ARB’s recent price surge was largely the result of speculations surrounding a partnership with Robinhood.

The Robinhood Effect

On June 29, Robinhood Crypto teased its “biggest crypto announcements of the year” with a fireside chat at Cannes featuring Ethereum’s Vitalik Buterin, Robinhood Crypto’s Johann Kerbrat, and A.J. Warner from Offchain Labs.

So uhh, is Robinhood launching an L2 with the Arbitrum tech stack? https://t.co/2HqJaonTgE pic.twitter.com/mHtYFR0yQJ

— AJC (@AvgJoesCrypto) June 29, 2025

This immediately triggered rumors that Robinhood might integrate Arbitrum into its upcoming blockchain infrastructure for European stock trading.

Adding to the hype, former Ethereum core dev Eric Connor suggested that “Robinhood chose Arbitrum,” igniting hopes of a long-term strategic partnership. The result was a parabolic rally in ARB.

Looks like Robinhood chose Arbitrum https://t.co/oq29GIieKA

— Eric Conner (@econoar) June 29, 2025

The Dump: Early Investors Cash Out

Within 12 hours of the price surge, The Data Nerd reported that early investors, including Paradigm Capital, transferred approximately 16.75 million ARB tokens (worth around $5.85 million) to centralized exchanges like Binance and Coinbase.

Within 12 hours, #Paradigm_Capital and early investor of $ARB deposited totally 16.75M $ARB (~$5.85M) into #Binance and #Coinbase.

Address:https://t.co/pjwZDoenTihttps://t.co/sdjvhx4ZIr pic.twitter.com/zLygtvkUuf

— The Data Nerd (@OnchainDataNerd) July 1, 2025

Such large-scale movement typically signals an intent to sell, and the price action confirms it: with a 10% drop. The timing indicates classic “buy the rumor, sell the news” behavior.

Technical Analysis: Warning Signs and Possible Scenarios

On the daily chart, the BoP indicator is deeply negative at -0.86, reflecting dominant seller control in the market. Meanwhile, the RSI on the daily chart has dropped to 48.88, with the moving average at 43.27.

These momentum indicators reveal that the ARB rally has lost momentum and is vulnerable to deeper corrections unless fresh bullish catalysts emerge soon.

For ARB, the immediate support lies at the 0.236 Fib level of $0.2937. If broken, price could test the recent local bottom at $0.2526. On the other hand, bulls face resistance at $0.38 (0.618 Fib) and $0.4267 (swing high).

A break above $0.4267 could open the gates to higher targets at $0.5343 (1.618 Fib), $0.7085 (2.618 Fib), and even $0.99 (4.236 Fib), though such upside would require sustained bullish momentum.

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