In the dynamic world of cryptocurrency, Arbitrum’s governance token, ARB, has recently faced a notable challenge with a partial network outage. Despite this hurdle, ARB is exhibiting resilience by holding steady, trading close to 5% lower but maintaining its position above the critical 21-day moving average (21DMA) at $1.10.

The official X account of Arbitrum reported a sequencer stall at 10:29 ET due to a “significant surge in network traffic.” The development team is actively addressing the issue, assuring users of a swift resolution. Surprisingly, the ARB token appears largely unaffected by the network outage news. This resilience may indicate investor confidence in Arbitrum’s capable development and maintenance team. The outage, caused by increased demand, could be viewed positively, signaling a robust user base.

In tandem with the broader cryptocurrency market, ARB’s current trading behavior on Friday reflects a slight dip. This dip is attributed to hawkish commentary from a Fed policymaking official. Despite the recent setback, ARB is currently trading around $1.13, representing a modest 13% decrease from its multi-month highs of $1.30 earlier in the week.

Chart analysis suggests that if ARB maintains its position above major moving averages, short-term price risks remain tilted to the upside. There’s potential for a retest of the mid-$1.30s, reflecting the summer highs. The bullish outlook for ARB hinges on positive fundamentals supporting a fresh upside and a resurgence in network activity. While the chart indicates a period of stagnation in network activity throughout 2023, renewed usage is anticipated if the broader crypto market continues its upward trajectory.

Despite the temporary setback with the network outage, ARB is showcasing resilience and positioning itself for potential recovery. This optimistic scenario is contingent on favorable market conditions and a revival of network activity. As the cryptocurrency landscape evolves, ARB remains a token to watch for potential upside in the coming days.