Arbitrum's native token ARB saw a decline of 2.46% over the past hour to trade at $1.17, with the asset's market cap standing at $1.53 billion. Trading volume for ARB amounted to $84.56 million over the last 24 hours.

Analyzing performance across different timeframes shows mixed signals for ARB currently. Over the past 24 hours, ARB is relatively flat, up just 0.01%. However, zooming out to the weekly view shows a decline of 10.38%, indicating increased selling momentum recently. Monthly performance also remains negative at -3.40%.

Will Arbitrum Bounce Back or Decline Further?

Given the bearish signals, Arbitrum could see a retest of 2022 support around $1.10 in the near-term. Below that, $1.00 represents the next key level to watch. Strong resistance stands at $1.25, making a quick recovery unlikely barring renewed buying interest.

However, ARB's innovations in scaling Ethereum via rollups continue to hold long-term potential. Any resurgence in layer-2 narrative could lift prices again. But in the short-term, downside risks prevail unless Bitcoin and the broader market see rallies.

What's the Optimal Trading Approach for ARB Now?

Traders should look to sell into any rallies towards $1.20 resistance. Fresh long positions could be considered on a break back above $1.25. Stop-losses on longs should be maintained around $1.10.

Long-term investors can accumulate on dips, but an allocation of 1% or less of a portfolio is prudent given current weakness. Periodic rebalancing also remains key.

Overall, ARB faces near-term bearish pressures but retains long-term upside potential. Prudent risk management is essential whether trading or investing at current levels.

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