As digital assets continue to endure a crypto winter, Arweave is crafting a name for itself. The cryptocurrency nearly doubled in value in November. The monthly lows remain at $10, with the highest at $17.8 on November 3. Arweave’s token has fallen back to $10.8, and investors could be looking at it as a potential buy on the dip. Should you?
Arweave is a Decentralised Storage Network or DSN. It allows people needing extra computer storage solutions to connect with those with extra capacity. Arweave is unique in that it permits permanent storage for a single payment. That makes Arweave different from other blockchain-related storage solutions like Filecoin, which involve multiple payments.
Arweave token (AR/USD) has been of interest to investors this month after impressive cryptocurrency news. Meta had announced that it would use Arweave to store its non-fungible tokens on its social media platform. That emphasises that big corporations see the opportunity offered by the blockchain platform. The question now is, can the token sustain the bullish momentum it started this month?
AR on a retracement after the latest gains
Source – TradingView
Technically, AR met resistance at the $17.8 level. The zone is a long-term resistance that the cryptocurrency has retested severally in the past. The level is the swing high on the Fibonacci retracement, while the swing low is $8.4.
From the daily chart above, the Fibonacci retracement levels are $10.681 (23.6%), $12.052(38.2%), $13.16(50%), and $14.27(61.8%). The token is testing the 23.6% Fib level. The MACD indicator is bullish, but momentum is waning.
Should you buy AR?
While the latest price action is positive for AR, we remain cautious about sustainability. The $17.8 level remains a stumbling block for further upside. Coinciding with a weak crypto sector outlook, a sustained price recovery may be hard to register for AR.
Should a bullish momentum remain for AR, we expect a retest of the $17.8 resistance. On the flip side, AR could next test the $10 support. Also, watch the Fib levels for potential price corrections.
Where to buy AR
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
Kucoin is a cryptocurrency exchange which offers over 200 cryptocurrencies.
Kucoin has a wide range of services, such as; a built-in peer-to-peer exchange, spot and margin trading, bank level security and a wide range of accepted payment methods.
Users can benefit from a beginner-friendly interface and relatively low fees.