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Arweave, a blockchain network known for its permanent data storage, has shown a significant rejection from its overhead trendline barrier of $30. The token exhibited a five-day losing streak and dropped more than 15%.
Arweave token experienced continuous selling pressure from the supply region of $50 when trading inside a falling channel. It has been declining for the last three months.
Forming a series of lower lows, it reached a crucial pivot of $20, looking for a significant pullback. Last week, Arweave showed a revival and revisited the 50-day EMA mark. However, it failed to surpass and faced rejection.
Notably, the token has escaped a base consolidation pattern above the $20 mark and is eyeing for a significant breakout. With a market cap of $1.45 billion, AR is ranked at 55 and has a total supply of 65.45 million.
Arweave traded at $23.56, noting a decline of over 6.67% in the last 24 hours. Its trading volume increased over 36.20% to $49.01 Million, replicating seller confidence.
Arweave (AR) Stagnates Near Demand Zone: Can It Plot a Reversal Ahead?
On the daily chart, the AR token saw a rejection and showed signs of bearishness. Amid the price rejection from the $28 mark, the token slipped to the 20-day EMA mark.
However, the token is seen holding around the $20 mark, and the selling pressure may be reduced ahead.
AR Price Chart | Source: Santiment
Looking at the weekly charts, Arweave is briefly trapped in the middle of consolidation. A surge in volatility should be expected shortly.
Losing more than 15% this week, the bears are now charging to revisit the weekly support around the $20 mark. A strong rejection from the Bulls’ side should counter the latest drop.
@Decliizer, in his tweet, said that Arweave has a solid support level of around $21 and will see a potential rise ahead.
$AR is showing strong momentum, with a solid support level at $21 and a clear upward trend, suggesting a potential rise towards the next target of $33. Hopefully, BTC will also continue its positive trend!
— Decilizer (@decilizer) August 27, 2024
Previously we've seen 11x gains on it. pic.twitter.com/bSqBEah4Ey
A Tweet by @Decliizer | Source:X
The RSI curve showed a bearish divergence and projected a negative view. Similarly, the CMF indicator gives a negative reading, indicating a higher selling pressure.
From a technical standpoint, the price is still within a bounce region. If Arweave halts near the 20-day EMA mark, it would bring the bulls back on track and could see a short-term rebound ahead.
What Does Social Dominance and Development Data Indicate?
The Development activity data showed mixed cues, as the curve flows near the midline region. It directed a minor growth in its ecosystem.
Social Dominance Data | Source: Santiment
The social dominance data showed an uptick, rising to 0.14%. It highlighted increased media chatter among investors on social media platforms. Amid the price decline, there is a buzz for the token, which signifies its popularity.
On a positive note, the funding rate stands above the zero line at 0.0064%, which indicates a positive sentiment. The liquidation data shows that around $25.20k longs were liquidated, whereas $1.20k shorts were liquidated.
This led to a significant price decline of over 6% intraday. For a bearish move, the potential support level to watch a drop is $20, followed by $18. The $15 mark could be considered a strong support if these levels fail to contain selling pressure.
The higher resistance levels to watch for a pullback are at $30, followed by $35.