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Arweave Increases 21% In 24 Hours After AO Token Announcement With Potential New Yearly High Ahead

Last Updated May 31, 2024 2:27 PM
Nikola Lazic
Last Updated May 31, 2024 2:27 PM

Key Takeaways

  • AR price spiked 20% due to the AO token announcement.
  • AO supercomputer launch is set for June 13.
  • AR price nearly reached a yearly high, suggesting more upside.

Arweave’s token AR price spiked 20% yesterday and continued rising today, reaching a high of $45. This was because of yesterday’s announcement regarding the AO token one Arweave blockchain launch. 

With AR’s yearly high only 10% away, will its current rise lead to a new one? 

AO Token Set To Launch in June 

The upcoming fair launch of the AO supercomputer on the Arweave blockchain is set for June 13. This event is significant as it introduces a new token, AO, with a total supply of 21 million, following a Bitcoin-like four-year halving cycle. The launch aims for a 100% fair process without any pre-mining, pre-sales, or preferential access, allowing the community full participation.

AO is built on Arweave’s data storage layer, promising to enhance blockchain scalability through its modular architecture. This platform is designed for high transaction volumes and supports parallel processing, making it suitable for applications requiring significant computational resources, such as AI modeling and large language models.

The AO platform will also be compatible with Ethereum’s Virtual Machine and integrate with other blockchain protocols through WebAssembly for smart contracts. This hybrid approach positions AO to merge the reliability and security of blockchain with the performance capabilities of high-end commercial servers like Amazon AWS.

AR Price Analysis 

After bottoming out at $4 in October 2023, AR began a new bullish trend, reaching $46 on March 9, 2024. This marked a significant breakout above its previous consolidation zone, and the $21 level was retested as support on April 13, which prompted a bounce.

AR
ARUSD | Credit: Nikola Lazic/Tradingview

By May 20, the price climbed to almost $50, creating a slightly higher high and suggesting potential for further increases. But it quickly reversed and fell by 25% on May 29 to a low of $36. From there, it started to gain upward momentum, validating its ascending support

If this upward trend since October last year represents the start of a new bull phase, it could be part of a five-wave pattern with the final wave currently unfolding. The next target for Arweave could be above $55. However, if the price starts to falter, there’s a risk it could retreat to the support zone just above $20.

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.
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