[Arweave faces the challenge: Can the AR bull market break through the $30 mark]
Arweave, a blockchain network known for its permanent data storage, has recently encountered strong selling pressure from a trendline above $30, resulting in five consecutive days of losses, totaling more than 15%. The coin has been under pressure within the $50 supply zone and has continued to move lower over the past three months and is currently within a descending channel.
Finding support near $20, the Arweave token bounced back last week and tested the 50-day EMA, but failed to break out and faced further selling pressure. Arweave is currently quoted at $23.56, down 6.67% in 24 hours, with trading volume increasing by 36.20% to $49.01 million, reflecting increased seller confidence.
Technical indicators are showing bearish signals. On the daily chart, the price has retreated from $28 to the 20-day EMA, and on the weekly chart, the coin is still within a consolidation range and volatility may increase. The bears are currently trying to retest support near $20, while the bulls are trying to fight back.
The RSI curve and CMF indicator are showing bearish divergence and negative values, indicating strong selling pressure. However, if Arweave halts its losses near the 20-day EMA, bulls may return to the market, pushing the price back up.
Social data shows an increase in investor discussion on social media, indicating rising interest in the token. The funding rate is 0.0064%, indicating positive market sentiment. Liquidation data shows that long positions are seeing significantly higher liquidations than short positions, further confirming the current bearish trend.
Support levels to watch are $20 and $18, with $15 likely to act as strong support if these levels fail to curb selling pressure. Potential resistance levels on the upside are $30 and $35.
