AR price spiked by over 40% in the last 24 hours. What's driving the rise and can it continue?
Key Takeaways
- Arweave’s price surged by nearly 250% in February.
- The launch of Arweave AO boosted the protocol’s scalability and appeal.
- Arweave’s decentralized storage and AI capabilities are some of the reasons behind the surge.
The price of Arweave spiked by over 40% on February 28, from its daily open of $19 to a high of $27. This was the continuation of an uptrend which started February 3, when AR traded at a low of $7.80, marking an increase of 247% to today’s high.
The staggering price rise in less than 30 days is down to several factors. Arweave, a decentralized storage solution, is an AI-enabling blockchains. Recently processing over 3.2 billion transactions, it has garnered investors’ attention.
On the other hand, the recent surge could be because of the launch of Arweave AO. This is a new project aimed at significantly enhancing the protocol’s scalability and computational capabilities.
Arweave AO
Sam Williams, co-founder of Arweave, introduced the Arweave AO protocol as a sophisticated computing framework. It is aimed at enabling parallel executions for proof-of-stake computations as well as catering to the growing demands of social media and AI applications on the blockchain.
The protocol has already processed around 89.7 million gigabytes data from more 192,000 addresses. It runs a testnet on more 220 global machines to boost scalability and support diverse projects through a modular setup and a custom operating system, AOS, compatible with Lua.
Arweave AO is fully compatible with the Ethereum Virtual Machine and supports WebAssembly for smart contracts. The platform focuses on enhancing network scalability and security through the Gateway Address Registry (GAR) and Observation Incentive Protocol (OIP) programs.
AR Price Analysis
After reaching $91 in November 2021, the price of Arweave entered a long-lasting bear market. Finally, on October 23 last year, it reached its lowest point of $3.70, where it stabilized.
A recovery started, with AR breaking out above $7.80 and continuing to a high of $11.60 on December 17. This was the first uptrend in a larger bull cycle. Afterwards, there was a 33% retracement to $7.70 on February 3.
This makes the current uptrend its third wave from an assumed five-wave impulse. When AR reached its next significant horizontal resistance zone around $25, we saw an interaction with its upper level of $27.50, leaving a wick on the daily chart.
The wick indicated strong seller’s pressure and, in conjunction with the daily chart Relative Strength Index showing overbought conditions, a correction looks highly likely. AR should develop its fourth wavr to consolidate the price before the final run-up.
$17 is its likely target, as this is the first area where the price can find support during the downturn. After it does that, however, Arweave’s price could reach $40.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
Arweave Price Prediction 2025: AR Aims to Target All-Time Highs Next
Status Price Prediction 2024: How is SNT faring after relaunch?
