Arweave could reclaim $15 support – Should you buy?
Arweave has seen gains in three straight trading sessions. The coin is looking up and could reclaim the important $15 support. But will this trigger a major bull run, and how far can AR actually go? The detailed analysis is below but first, key highlights:
AR has seen a modest bull run in the last 7 days.
The coin is up by around 20% as sentiment in crypto improves.
Arweave could test $18 in the coming days if this trend holds.
Data Source: TradingView
Arweave price analysis: The Short term setup
The crypto market has been very volatile for the better part of 2022. Every time we think we are about to see a decisive turn, prices just crash once more. June has started quite well for most coins. In fact, the overall market cap for the entire industry has gone up by around 20%.
Arweave appears to be following this broader trend in the market. It is likely the coin will continue rising in fact, once the $15 resistance is breached, AR could target $18 next in a short-term burst of bullish activity. This will represent a 25% gain from the current price.
The big challenge however for AR bulls will be to keep the momentum going. As we have seen before, most bullish runs in crypto this year have often been pushed by dip buyers. At some point, these short-term traders will cash out. We believe for AR; the cash-out price is $18. So, once the coin starts to get close to that threshold, expect it to pull back to around $13.
Should you buy Arweave?
AR offers a very decent short-term play. Once it crosses $15, there could be a buying opportunity with an exit price of $18.
Also, from a longer-term point of view, AR is heavily discounted right now. The coin has the required fundamentals to offer double-digit returns in the coming 6 months.