AR Technical Analysis: Rising Demand For Arweave Takes A Hit
Table of contents
Key technical points:
Past Performance of AR
AR price action shows a bullish reversal, with a double bottom pattern forming near the $7.72 mark. The recovery rally challenges the long-coming resistance trendline that has accounted for a decline of 47% over the past month. The breakout rally increases the likelihood of a bullish trend line breakout as the buying pressure increases.
Source- Tradingview
AR Technical Analysis
The AR daily candle shows a higher price rejection leading the prices under the resistance and increasing the breakout difficulty. Hence traders hoping for a bullish breakout rally must be patient for a price action confirmation. The MACD and the signal lines display an upward trend taking a sideways shift before reaching the zero line. And the shrinking spreads suggest an upcoming crossover to return to the bearish alignment. Thus, the indicator reveals an underlying decline in bullish sentiments.
The RSI indicator indicates the slope is recovering from the 14-day SMA to reach the halfway line. Therefore, the indicator showcases a positive growth in the buying pressure and increases breakout chances. Additionally, the bullish divergence in the RSI slope between the double bottom pattern suggests the possibility of a prolonged uptrend. In short, the AR technical analysis shows the indicators taking a bullish side against the long-wick daily candle. Hence, traders expecting a bullish breakout rally must wait for the market prices to surpass the $11 mark.
Upcoming Trend
Suppose the AR prices rise above the $11 mark; the trend line breakout rally will reach the $15 mark. However, a bearish continuation will lead to retesting the $7.75 mark.
Resistance Levels: $11 and $15
Support Levels: $10 and $8