Arweave price went parabolic this week, becoming one of the top performers in the crypto industry. The AR token soared to a high of $30.12, which was over 50% higher than where it started the week at. It has soared by over 660% from its lowest point in 2023, giving it a market cap of over $1.8 billion.
Arweave growing transactions
Arweave is one of the biggest players in the blockchain storage industry. It is a platform that helps developers and other users store their files permanently in the network. According to its website, it is used widely by the likes of Mirror, Instagram, and Metaplex.
The main reason why the Arweave price has jumped is that the level of activity in the network has jumped sharply in the past few days. According to Viewblock, the amount of data uploaded to its network on Wednesday stood at over 208 GiB, higher than the previous day's 185 GiB. The figure has been growing continually in the past few weeks.
Further, the number of transactions in the ecosystem has also surged hard recently. There were over 42 million transactions in the network on Wednesday, which was more than double where they were a week ago.
The number of Arweave addresses has been growing lately. Active addresses jumped to over 2,115 on Wednesday, also much higher than where they were a few weeks ago. The screenshot below summarizes this ecosystem's growth.
To be clear: Arweave’s price surge is also because of the ongoing cryptocurrency surge that pushed Bitcoin to its highest level in over two years on Wednesday. It has remained comfortably above $60,000 and analysts believe that it could soar to its all-time high.
AR price has also soared because of activities in social media platforms like X (Twitter), Reddit, and StockTwits, where it has been one of the most trending coins.
Arweave price forecast
Turning to the daily chart, we see that the AR price has been in a slow rally in the past few weeks. This rally turned to a parabolic move on Wednesday that pushed it to its highest point in months. As it jumped, the coin remained significantly above the 50-day Arnaud Legoux Moving Average (ALMA).
Further, the Relative Strength Index and the Stochastic Oscillator have all moved to the extreme overbought level. The coin also sits above the Ichimoku cloud indicator. Therefore, I believe that two things may happen soon.
First, the coin may retreat sharply as it moves into the distribution phase. If this happens, it could drop to the key psychological point at $20. Second, it may remain in a tight range as it forms a bullish flag or pennant pattern. In most cases, these are some of the most popular bullish patterns.
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