Arweave Price Recovers After Correction – AR Breakout Above $40 Could Lead to New Yearly High
Will AR Price Reach $50? | Credit: Hameem Sarwar
Key Takeaways
- Arweave broke out from a resistance trend line and trades only 17% below its yearly high.
- AR has increased markedly since April 12, in what is likely wave five of its upward trend.
- Will the AR price immediately break out from the $40 area, or is an initial retracement on the cards?
The AR price has been one of the best performers in 2024, increasing by 430% since the start of the year. Even though the price corrected after its yearly high in March, it seems that the correction is now complete.
AR trades at the final resistance area before the yearly high, and despite the rejection, all eyes are on it to see whether it will be one of the first tokens to reach a new yearly high after the marketwide correction in March.
AR Breaks out From Long -Term Resistance
The Arweave price had fallen under a descending resistance trend line since its yearly high of $47.51 in March. The decrease culminated with a low of $22 on April 13. AR has increased since and broke out from the trend line on May 4. This is a sign the correction is over.
Even though AR was rejected by the $40 resistance area, the wave count and indicator readings suggest Arweave will reach a new yearly high soon. Both the RSI and MACD are trending upward, the RSI is above 50 and the MACD is above 0.
The wave count suggests AR is in the fifth and final wave of an increase that started in October 2023. The sub-wave count is in white. If the count is accurate, AR can increase to $63.80, a target found by the 1.61 external Fibonacci retracement of wave four.
Despite this bullish AR price prediction, falling below the resistance trend line can trigger a deeper decline to $27.
Arweave Hard Fork Drives Rally – AR Price on Track to Break $50?
Arweave’s hard fork will introduce mining upgrades that allow multiple miners to collude and find mining solutions without the risk of losing rewards. This will be done through a two-role operation.
The anticipation for the hard fork took the AR price close to its yearly high, leaving investors and traders wondering whether AR will break it and move to the next resistance at $60.
What’s Driving the Increase?
The Arweave team notified that a hard fork would release on March 26. It will introduce a slew of new upgrades, the most important being coordinated mining .
The fork will allow multiple nodes to cooperate and mine for the same address without being at risk of blacklisting or losing rewards. Two roles exist, that of a miner and that of an exit node. While both cooperate to find the mining solution, only the exit node publishes the block, voiding the slashing risk.
The AR network upgrade will take place at approximately 14:00 UTC on March 26. Binance said it would temporarily suspend withdrawals and deposits of tokens on the Arweave network one hour before the upgrade in order to ensure the best user experience.
Ahead of the hard fork, the AR price increased over 20% in the past three days.
AR Price Prediction: $50 on the Cards?
The weekly time frame shows that AR has increased swiftly since October 2023. The upward movement followed a five-wave increase (black), with the price currently being in wave three (black). The sub-wave count (white) notes the price is in the fifth and final sub-wave, after which a correction could occur.
The price action is also bullish, since AR has closed above the 0.382 Fib retracement resistance level at $36.95. The next horizontal resistance is at $60, 50% above the current price.
The weekly RSI and MACD both give positive readings, since they are trending upward even though they show overbought readings.
AR Can Increase to $60 Before Correction
The AR price has enjoyed a significant price increase in anticipation of today’s hard fork. The price action and indicator readings suggest the increase will continue to the next long-term resistance at $60 before a major correction.
