The Arweave price pulled back in September as a sea of red engulfed the cryptocurrencies market. After soaring to an all-time high of $80.27, the AR token crashed by more than 58% to a low of $34. It is now trading at $46.31, giving it a market capitalization of more than $1.4 billion. It is the 68th biggest cryptocurrency in the world.
Arweave is a blockchain project that uses a data structure known as blockweave. The project’s goal is to provide scalable solutions that ensure permanent on-chain data storage. In addition to blockweave, the network uses other technology features like blockshadows, decentralized content policies, and AIIA.
The use case of the technology is significant. For example, since almost all data used in the web are stored in centralized platforms, Arweave’s technology aims to decentralize it. The risks of centralized websites is that they are at the mercy of the holding company. Also, the data stored in these platforms is at risk of manipulation.
Arweave has become a relatively popular blockchain project in the world. The Arweave price rose by more than 4,800% from the lowest level in November last year to more than $80. This made it one of the best-performing assets in the world. In September, it lost momentum as demand for cryptocurrencies waned as risks rose.
Arweave price forecast
The daily chart shows that the Arweave price has been under pressure in the past few weeks. A closer look shows that it has formed a bullish flag pattern that is shown in black. It has moved to the 25-day and 50-day moving averages. In price action analysis, a bullish flag pattern is usually a sign of a bullish continuation.
Therefore, there is a likelihood that the AR price will keep rising as bulls target the next key resistance at $80. A move above $80 will open the possibility of it soaring to about $100. On the flip side, a move below the key support at $35 will invalidate the bullish view.