Arbitrum (CRYPTO:ARB) has witnessed a significant price drop below $1, presenting a rare opportunity for investors.

Recent data suggests a bullish outlook as whale addresses holding large amounts of ARB tokens have been accumulating since June 5, indicating potential upward movement in price.

Technical indicators such as the Money Flow Index (MFI) and Relative Strength Index (RSI) signal oversold conditions, further supporting the possibility of a rebound towards the resistance level at $1.12 in the short term.

However, increased selling pressure or Ethereum's (CRYPTO:ETH) price fluctuations could impact ARB's trajectory, with a potential downside if ARB slips below $0.90.