The Arweave has been in a bearish trend in the past few months as its demand has waned. The AR token is trading at $27.27, close to its lowest point since August 27th last year. This is a remarkable drop considering that Arweave traded at over $92 in November. In addition, its market value has dropped to more than $1.3 billion, making it the second-biggest storage cryptocurrency after Filecoin.
AR downward trend continues
Arweave is a storage cryptocurrency that uses several technologies to help developers store files in a decentralized method. Its core technology is known as the permaweb, and it helps developers store their files and applications online forever. Apps stored in the permaweb cannot be modified by anyone, and anyone in a permissionless method can access them.
Permaweb provides a number of solutions to help developers build these apps. For example, it provides Gateways, a content delivery server that ensures that apps work well around the world. It also has GraphQL, a querying product, and SmartWeave, a simple, smart contracting system. Arweave is attempting to solve real challenges by letting developers use a decentralized form of storage and the outages that are associated with modern platforms. This is an industry that other storage blockchain projects like Filecoin and Storj are attempting to solve.
Is Arweave a good investment?
The storage industry is a multi-billion one that is ripe for disruption. One way in which Arweave and other projects are solving this is by using people to share their free storage to their networks. By so doing, they can create a large and more diverse storage platform that is spread around the world. The goal is to use the blockchain technology to disrupt an industry that is currently dominated by centralized companies like Google, Microsoft, and Amazon.
However, Arweave faces two key challenges. First, it is hard to see the number of people and developers already using its solutions. For example, it is easy to see the data about other blockchains like Ethereum, Solana, and Avalanche. Therefore, it is easy to conclude that Arweave is like a ghost chain with limited activity. Second, the industry is highly competitive. It is not only battling companies with unlimited resources, the blockchain industry is also highly competitive.
Arweave price prediction
The first thing you see when you look at the daily chart is that the Arweave price has formed a head and shoulders pattern whose neckline is about $33.50. In price action analysis, this pattern is usually a bearish sign. The coin has also collapsed below the 25-day and 50-day EMA. Therefore, there is a likelihood that the AR price will break out lower in the near term as investors start to question its network activity. If this happens, the next reference level to watch will be at $20.