After falling to a low zone around $7, today Arweave is trading at $11.74, recovering more than 60% from the low reached on June 18.
In the last 24 hours, AR has been the cryptocurrency that has increased in price the most in the TOP 100, with a yield of 14.24%.
But what is the reason behind this uptick? Reviewing the official Twitter of the project, we can think that the catalyst behind the profits, was the successful first round of Arweave domain assignment.
However, it does not seem to be the absolute bullish factor. A mix between the widespread calm feeling in the market, and an increase in the adoption of the project, may be generating the price increase.
Technical analysis of Arweave (AR)
Today on the weekly AR vs USD chart we see how the price is breathing upwards, after having achieved support at $7.
It seems that we are seeing the development of a healthy and necessary reversal of the medium-term trend, which, for the moment, remains bearish. If we follow the current course, we could see gains of up to 70% in the short term, while the price is looking for 38.20% Fibonacci, around $20.
While this is an opportunity for traders, holders still cannot take confidence from the current small rally. There is still an important bearish direction, consisting of lower and lower lows. The ongoing rally could be a simple pullback to fall again.
Key short-term levels
On the daily chart we see a small uptrend, thanks to the higher and higher lows and highs.
Right now we are seeing momentum, which still shows no signs of exhaustion.
Currently, the ground is cleared for earnings up to a minimum of $15.66. Higher up the next resistance is at $19.25. I would not be surprised to see the price approaching the 200-period moving average, currently bearish, and around $30.
Arweave (AR) needs to maintain the succession of higher and higher lows in order for this scenario to continue standing. If the immediate support at $10.14 is lost, a broader rally could be postponed.
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