It is possible, yes. In theory, an unlimited number of arbitration hearings is possible.
If a arb-eligible player - say one with 4.000 years of ML service time - is demoted after arb and spends the 95% of the year at AAA, only to be called up for playoff push and post-season, he would again be arbitration-eligible the following season, now with 4.005 years of ML service time. Repeat as often as you like (provided no one else claims him when he runs out of options and needs to clear waivers to be sent down to AAA).