Derivatives Traders In Action: Is Arweave Next To Join The Rally?

• The Arweave price has been in a consolidation phase for the last two months.
• The Open Interest contracts grew substantially over the past week, indicating renewed investor confidence.

Arweave (AR) has been consolidating for the last two months and has yet to breach the higher supply zone. Now, the positive trajectory of the broader market is shaking the token to break out of its comfort zone.

The intraday rise of 8.29% and counting indicated that Arweave bulls have awakened and have attempted a trend shift. The long-term trend outlook has not supported bulls for the last couple of months, making it difficult for bulls to survive.

However, the improved sentiments in the broader market and support from the derivatives traders have added new hope. It emphasizes the possibility that the bulls can make a trend reversal. The AR price was approaching a crucial zone from which whoever takes the lead may drive the trend.

Let’s analyze all the factors that will decide Arweave’s trajectory and help investors decide.

Derivatives Traders Bring a New Hope of Optimism in Arweave

Over the past three months, Arweave had been under the control of Bear and has been declining, losing the gains. The Arweave price dropped nearly 56% from the annual high recorded in May at $49.71. With a market cap of $1.41 Billion, the token ranked 52nd in the crypto space.

However, a weekly rise of 14%, including an intraday rise, signals the bulls’ comeback. Moreover, the recent comeback of the AR price has been backed by derivatives traders. Derivatives traders have made aggressive bullish bets, indicating improved sentiments in Arweave.

As per Santiment, an on-chain analytics provider, the open interest contracts a week ago were $36.7 Million. It has now increased to $55.6 Million. An $18.9 Million, i.e., a 50% jump in the open interest contract, suggested a recovery in the Arweave price.

Along with the development of open interest, one more metric has caught the attention of analysts: social metrics. Social metrics depicted social users’ increasing or decreasing participation over different social media platforms.

As shown in the charts, the social metrics curve was headed upward. It indicated a growth in the participation of social users.

Will Arweave be a Good Investment in October?

Recent sessions show bulls helped Arweave bottom out and recover losses. However, the long-term trend outlook still favors the selling side.

 

The Bulls need to overcome a few challenges to turn the table in their favor. On the higher side, the 200-day EMA at the $24.9 level and the recent supply at the $26.3 level are hurdles for the bulls.

A breakout above the supply could validate a trend shift on the positive side, and AR price could proceed further.

On the contrary, the downside risk can’t be ignored. The $18.5 is crucial for the bulls to keep the short-term trend control in their favor. A break below recent support could confirm the domination of sellers over the trend, and the price may slump more.

However, the improved sentiments, heightened user engagement, and short-term bullish control suggest the bullishness has extended. Arweave could be a good pick for investors in October if the price flips the recent supply into demand.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.