Arweave (AR) has advanced more than 100% since the beginning of January 2023, rising from $6.07 to a high of $12.85. The current price of AR stands at $12.25, and for now, bulls continue to control the price movement.
The US central bank raised interest rates by a further 25 bps on Wednesday (as widely expected), but a less hawkish message from Federal Reserve Chair Jerome Powell boosted equities and gave support for the cryptocurrency market.
Today, Crypto Lists will discuss Arweave (AR) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
Arweave allows you to store data forever
Arweave is a project that seeks to store files across a distributed network of computers allowing its users to truly store data forever. Arweave is run by its community, and one of the goals of this project is to disrupt a market dominated by existing storage giants like Google, Amazon, and Microsoft.
Arweave has much in common with other decentralized storage platforms like Filecoin and Sia, but what sets Arweave apart from competitors is its commitment to permanently storing data through unique incentives built around its AR cryptocurrency. The core technology that powers the Arweave is the blockweave which stores data in a graph of blocks, and each block is linked to two earlier blocks.
This is in contrast to Bitcoin, where blocks are linked in order, forming a chain, and it is also important to note that Areweave’s design differs from Bitcoin in the way it checks the accuracy of transactions. Where Bitcoin asks computers on its network to compete to solve a mathematical puzzle (proof-of-work process), Arweave uses a different mechanism called “proof-of-access.”
Supply: 33,394,701 / 66,000,000
Release date: July 7, 2018
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In short, Arweave requires each computer taking part in the network to check that a new bundle of transactions also contains a randomly selected marker from an earlier bundle. If that marker is present, then the new transactions can be added to the network, and in this way, the proof-of-access mechanism helps ensure that computers on the Arweave network can verify that all new transactions are accurate.
Arweave allows users to choose the type of data they wish to store, and users who decide to store data on Arweave must buy AR tokens to pay for distributed data storage. For example, some users want to only host audio files and not images. When the new content is uploaded to the network, Arweave will ask each computer whether it will accept the data.
Computers that provide storage services for Arweave must accept payment in AR tokens; however, the payments aren’t paid directly. Instead, they are pooled and distributed gradually over time to the computers. According to many analysts, Arweave has a bright future, but it is also important to keep in mind that the future of Arweave is highly dependent on the overall performance of the crypto industry.
The beginning of the 2023 year has been very successful for Arweave (AR), and the price of this crypto added more than 100% to its value. Arweave co-founder and CEO Sam Williams said that Arweave experienced its highest-ever monthly transaction count in January as the number of transactions reached over 58 million.
“This is up 80% over the previous month and 21% higher than during the “NFT bull market peak. Since the June 2022 low of approximately 12 million, transactions have been rising sharply, with January seeing a near-vertical increase in transaction count.”
– Sam Williams, CEO, Arweave
For now, bulls continue to control the price movement of Arweave (AR), but the highly volatile nature of the cryptocurrencies may scare investors again to sell Arweave if a dip happens in the cryptocurrency market.
The Fed still dictates
The US central bank raised interest rates by a further 25 bps on Wednesday (as widely expected), but a less hawkish message from Federal Reserve Chair Jerome Powell boosted equities and gave support for the cryptocurrency market.
Federal Reserve Chair Jerome Powell said that inflation’s pace is trending down, and because of this, investors hope that the Fed could put interest rate hikes on pause at their March meeting. At the same time, the US economy showed that the jobs market remains surprisingly strong after the nonfarm payrolls report showed 517,000 job additions in January.
This is almost three times the expectations of 185,000 additions, while the unemployment rate ticked down to 3.4% in January, which is the best result in the last fifty-three years.
However, while inflation’s pace is trending down, the Fed will have a much harder time getting it down to its desired 2% target. US job growth is also one of the reasons why the US central bank could keep interest rates at higher levels for longer in its fight against inflation.
“Whenever we see these big numbers, the fear of the Fed comes back with a vengeance because people are probably afraid that the Fed is going to push things even further than what they have, running the risk of not soft landing, but more of a car crash.”
– Brian Jacobsen, Senior Investment Strategist, Allspring Global Investments
Technical analysis for Arweave (AR)
The price of AR has increased more than two times since the beginning of January 2023, rising from a low of $6.07 to a high of $12.85. The current price of AR stands at $12.25, and as long the price of AR is above $10, we can’t talk about a trend reversal, and the price of this crypto remains in the BUY-ZONE.
Important support & resistance levels for Arweave (AR)
On this chart (the period from April 2022), I marked important support and resistance levels that can help traders to understand where the price could move. Arweave (AR) remains in a “buy zone,” and if the price advances above the resistance that stands at $15, the next target could be located around $17.
The strong support level is $10, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $8. If the price drops below $8, which also represents an important support level , the next target could be located around $7 or even below.
What speaks for the rise in the Arweave (AR) price
The beginning of 2023 has been incredible for Arweawe (AR), and if the price advances above the resistance that stands at $15, the next target could be located at $17. Arweave co-founder and CEO Sam Williams said that Arweave experienced its highest-ever monthly transaction count in January as the number of transactions reached over 58 million.
What indicates the downfall for Arweave (AR)
Arweave (AR) has advanced more than 100% since the beginning of January; still, traders should keep in mind that the price can easily return to levels seen in December 2022. The strong support level for AR stands at $10, and if the price breaks this level, the next target could be a support level that stands at $8.
The price of Arweave (AR) is also correlated with the price of Bitcoin, and if the price of Bitcoin drops again below the $20000 price level, that would probably have a negative influence on the price of AR.
What do analysts and experts say
Sam Stovall, a chief investment strategist at CFRA Research, said that despite a rally that happened on the stock and cryptocurrency market, the track record implies that maybe we do have some more upside potential.
On the other side, Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank, said that despite the current bullish trend, the cryptocurrency market isn’t ready for a rocket ship rally yet, and prices could pull back at least once more time.
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