- The minting of AO tokens could boost the AR price.
- Arweave has a strong presence on social media and GitHub.
- On-chain metrics indicate growing adoption and trust in AR.
Despite its minimal correlation with Bitcoin, Arweave has garnered significant attention in the evolving crypto landscape. Its innovative data storage solutions certainly helped. These solutions aim to revolutionize how data is stored and accessed on the blockchain.
The price of AR price has been struggling around the $23 level and the 200-day EMA band. Bitcoin surged to nearly $66,000 this week, lifting most cryptocurrencies. However, the Arweave price failed to show the same optimism. It indicated a weaker correlation with Bitcoin’s price movements.
When writing, AR was trading at around $23.43, sparking curiosity about its future trajectory. This article explores the factors that could influence the Arweave crypto price and determine its direction.
Will Arweave’s Strategical Move Push AR Price Higher?
According to a recent ARweave retweet, over 2 million AO tokens have been minted for a 100% fair launch, becoming transferable in February 2025.
This strategic move aims to boost Arweave’s market presence by granting AO tokens entirely to AR holders. With this move, the AR price might gain a boost before the minting completes in Q1,2025.
Fundamental Overview Highlights Optimism in the AR Crypto
Arweave has a solid presence on X (formerly Twitter). Its X account is 7 years and 4 months old with 100.182K followers. It gained 4 followers in just one day, reflecting steady growth over the past month. With 4.435K posts, Arweave has established itself in the crypto community.
On GitHub, Arweave’s account has been active for over 7 years and has earned 1800 stars from developers. That indicates it has a robust development activity.
The project is fundamentally sound, boasting a security score of 73.03 and a BBB tier security class rating.
Overall, Arweave’s development activity and social dominance are on the incline. This growing social presence could positively impact the Arweave price. That’s because increased user participation may drive demand and boost the value of AR crypto.
Similarly, further on-chain data highlights that the Arweave crypto‘s address count has skyrocketed in recent years. Before the last quarter of 2020, it was below 30K. However, over the next four years, it saw phenomenal growth. As of now, the total address count has reached 211.366K. That showcases a massive adoption rate for this cryptocurrency.
Additionally, Arweave’s transaction growth in 2024 has been remarkable. In September alone, there were 898.344 million transactions. This surge in transaction count underscores the increasing trust and confidence investors have in AR crypto.
Despite Optimism On-chain, What’s Hindering AR Price Potential?
According to Coinglass, AR crypto‘s OI-weighted funding rates have climbed to a positive 0.0104%. This is signaling a shift towards market optimism. Traders are betting on the increased potential for the AR price to rise.
Similarly, AR crypto‘s open interest has reached $94.92 million, marking an 11.52% increase from the previous session.
In the past 24 hours, derivatives volume surged by 150.28%, bringing the total traded value to $282.03 million. This increase reflects the growing demand for AR crypto in the derivatives market.
The derivatives data indicate a generally bullish outlook. However, bearish activity is hindering growth, as seen in this week’s liquidation data. On the 23rd, high ‘shorts’ liquidations led to a green candle, reflecting optimistic sentiment.
However, bearish traders attempted to halt this momentum, resulting in strong long liquidations versus weak shorts this week.
Despite these bearish efforts, the current support level remains intact, and consolidation in the AR price was seen. In the broader picture, funding rate data shows that bulls have been dominant this month. If short positions continue to liquidate, bears may ultimately lose ground to the bulls.
What’s Ahead for the AR Price?
The daily chart for the AR price reveals a strong start in Q1 and Q2 of 2024. By the end of May, the price peaked at $49.51 but then declined in June.
Selling pressure from a developed supply zone pushed the Arweave price down to $16 by August in Q3 2024. However, bulls stepped in on August 5th, halting the decline.
Throughout September, the price attempted to rise but was hindered by the 200-day EMA on the daily chart.
Overall, the price action is confined within a descending wedge. Depending on momentum, it could rise towards the upper boundary, potentially doubling in value.
Conversely, if bearish pressure persists, the AR price might fall back to the lower boundary. A breach of this lower boundary could lead to further bearish momentum.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
