The Arweave price recovery is well underway and could lead to the AR token reaching a new all-time high before the new year.
Arweave (AR) is firmer at $56.42 (+4.18%)in early Christmas Eve trading, extending the gains from last weeks low to 60%, erasing almost all of the losses from the start of the month. Arweave has been an excellent investment in 2021. The AR token started the year at around $2.00, climbing as high as $44.00 during the first altcoin season before collapsing to $7.00 in July. However, the decentralized storage network gained over 1,100% from the summer lows and set an all-time high of $91.00 in November. Since then, AR has followed the broader market lower. Nonetheless, Arweave has delivered a +2,000% ROI year-to-date and currently commands a $1.9 billion market cap, ranking it the 70th most valuable cryptocurrency. Furthermore, the technical backdrop suggests the Arweave price could soon break higher.
AR Price Forecast
The daily chart shows Arweave’s recovery has lifted it above the 50-Day Moving Average at $48.50 and the significant 200-DMA at $54.68. However, the price is struggling to clear the resistance of the 100-DMA at 56.91 and the upper Bollinger Band at $59.24.
If AR clears the 100-DMA on a closing basis, it should also advance beyond the upper BB. In that event, the price could target the ATH at the top of the distribution channel.
Considering the above factors, I am bullish on Arweave and expect to see a new all-time high soon. However, if AR falls below the 50-DMA, the immediate outlook deteriorates. For that reason, a daily close below $48.50 invalidates my bullish thesis.
Arweave Price Chart (daily)
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