Karla Barker 
Arbitrum has been moving differently this week. After days of hovering in a tight range, ARB broke higher and reached a monthly high of $0.09. At press time, it was changing hands around $0.088, up more than 16% on the daily chart. Trading volume also climbed sharply, up 378% to $158 million. That kind of jump usually points to fresh participation, not just a brief move.
ARB breaks out on rising demand
Spot netflow turned negative on August 19, hitting -$495k. It stayed negative at press time, around -$80k. Negative netflow generally means more coins leaving exchanges, which can reduce immediate sell pressure. So the spot side is looking reasonably bullish.
Derivatives data told a similar story. Trading activity picked up, with derivatives volume up 122% to $193 million. Open interest rose 3.3% to $110 million. When volume and open interest rise together, traders are opening new positions. That has historically been a supportive sign for price momentum.
Record RWA holders and bridge inflows
On the network side, Arbitrum One crossed 10,000 RWA holders for the first time. That is a record for the protocol. Capital is also moving into the bridge. DeFiLlama data shows USD inflows to the Arbitrum Bridge hit $324 million, the highest level in four months. Taken together, these metrics suggest more users are engaging with the network, even if the exact value of that adoption can be hard to pin down.
Can the rally continue?
From a technical standpoint, ARB has flipped the 20-day and 50-day EMAs and is now testing the 100-day EMA. The RSI moved above 67 after a bullish crossover. That points to strong short-term momentum. But I would be careful with RSI at these levels. It can stay overbought for a while, but it also means the move is getting stretched.
The big question is whether ARB can hold this. If buying pressure stays and the recent activity holds, the next level to watch is $0.10. Closing above the 100-day EMA would be a useful confirmation. On the downside, losing $0.073 would probably undo the breakout. For now, the market tone is positive. But rallies like this can fade quickly if volume dries up.