Arweave has been on a bearish market since the beginning of November 2021. This has seen Arweave price drop by more than 55 percent this year. The cryptocurrency has also been very volatile in the past few months compared to other cryptocurrencies.
Although the current price drop can be attributed to the crypto market’s downturn, Arweave is also in one of the most competitive blockchain niches of file storage. This has meant that the network has to remain innovative to be competitive. Currently, it is the second biggest storage cryptocurrency after Filecoin.
Arweave Price Prediction
Arweave has lost over 10 percent of its value in two days. Today’s trading session also marks a second consecutive day that Arweave is dropping in price after losing 3.5 percent of its value. Today, the cryptocurrency is currently trading at $30. It is also in a long-term bearish market that began on January 4, 2022, and has seen Arweave price drop by more than 55 percent.
Looking at the daily chart below, my Arweave price prediction will use the Fibonacci retracement tool to indicate past support and retracement levels. Since the current bearish move started, Arweave’s price has been forming lower lows and lower highs, indicating that the prices are on a downtrend. Each time a new lower high was formed, it formed a resistance level. These resistance levels were also close to retracement levels of the Fibonacci analysis tool. Based on the daily chart, the resistance levels were formed at 78 percent, 61 percent, 38 percent and the latest one has been formed at 23.6 percent.
Using the Arweave daily chart, we can see the prices have recently hit the 23.6 percent retracement level. We can also see past price action after every retracement level. Therefore, I expect the price to drop to $23, which is the current recent and long-term support level. However, if the prices reverse and move past the 23.6 percent retracement level, then my analysis will be invalidated. It will also mean we are likely to see a bullish move.