Arbitrum ($ARB) has emerged as a standout protocol in the cryptocurrency ecosystem, particularly for its role in tokenizing real-world assets, according to crypto analyst Michaël van de Poppe. Despite a sharp 70% decline in its token price over the past three months, ending around December 4, 2025, van de Poppe argues that $ARB is severely mispriced, presenting intriguing trading opportunities for savvy investors. This analysis delves into both technical and fundamental aspects, highlighting why $ARB could rebound significantly, potentially multiplying its value by 2026. As cryptocurrency markets navigate volatility, understanding $ARB's undervaluation through metrics like total value locked (TVL) and decentralized exchange (DEX) volumes becomes essential for traders eyeing entry points.

Fundamental Strength Driving $ARB's Potential Rebound

The core appeal of Arbitrum lies in its position as a leading layer-2 scaling solution on Ethereum, enabling efficient tokenization of virtually any asset worldwide. Van de Poppe points out that while the broader crypto market has faced downturns, $ARB's ecosystem is thriving. Notably, the TVL on the Arbitrum chain has been hitting new all-time highs (ATHs) consistently, even amid challenging market conditions as of December 4, 2025. This surge in TVL indicates robust capital inflows and user adoption, with funds locked in protocols reflecting confidence in Arbitrum's infrastructure. For traders, this metric is a key indicator of network health; rising TVL often correlates with future price appreciation, as seen in historical patterns with other layer-2 tokens like $OP (Optimism) during bullish cycles.

Complementing this, DEX volumes on Arbitrum have shown significant increases, signaling heightened trading activity and liquidity. Van de Poppe notes that the number of applications built on the ecosystem is expanding weekly, fostering a vibrant developer community. Although active addresses have dipped compared to late 2023 levels, this is attributed to the overall market slump rather than inherent weaknesses in Arbitrum. From a trading perspective, these fundamentals suggest $ARB is undervalued relative to its growth trajectory. Investors might consider dollar-cost averaging into $ARB during dips, targeting support levels around the recent lows. If Bitcoin ($BTC) stabilizes above $60,000, it could catalyze a rally in altcoins like $ARB, potentially pushing it toward resistance at $1.50-$2.00 based on past price action.

Technical Analysis and Trading Indicators for $ARB

Shifting to technical analysis, $ARB's chart reveals classic signs of mispricing. The 70% drop over three months, as highlighted by van de Poppe on December 4, 2025, has brought the token to oversold territories on indicators like the Relative Strength Index (RSI), which may be hovering below 30, indicating potential exhaustion of selling pressure. Traders should watch for bullish divergences on the daily chart, where price makes lower lows but RSI forms higher lows, often preceding reversals. Moving averages could provide confluence; a crossover of the 50-day EMA above the 200-day EMA might signal a golden cross, a buy signal that has historically led to 50-100% gains in similar altcoins.

On-chain metrics further bolster this case. Increasing DEX volumes point to rising transaction fees and network usage, which could translate to higher token demand if Arbitrum's governance model rewards stakers. For spot traders, key levels include support at $0.50-$0.60, where volume profiles show accumulation zones from earlier 2025. Resistance at $1.00 represents a psychological barrier; breaking it with high volume could open paths to $2.50, aligning with van de Poppe's prediction of multiples by 2026. In futures trading, leverage positions on pairs like ARB/USDT on exchanges such as Binance could amplify gains, but risk management is crucial given volatility. Correlating with Ethereum ($ETH), if $ETH breaks $3,000, $ARB might see amplified upside due to its layer-2 dependency.

Overall, the disconnect between $ARB's declining price and its booming fundamentals underscores a market inefficiency ripe for exploitation. Traders should monitor broader sentiment, including institutional flows into tokenization projects, as real-world asset (RWA) adoption grows. With no immediate real-time data shifts noted, the narrative from December 4, 2025, suggests holding or accumulating $ARB for long-term plays. Potential catalysts include upcoming upgrades or partnerships, which could propel $ARB back to fair valuation. In summary, combining technical setups with strong on-chain growth positions $ARB as a high-conviction trade in the evolving crypto landscape, offering substantial upside for those navigating the current bearish phase strategically.