Arweave AR/USD has weakened from $70 to $27 since the beginning of January 2022, and the current price stands at $39.
Store data forever
Arweave is a project that seeks to store files across a distributed network of computers allowing its users to truly store data forever. The core technology that powers the Arweave is the blockweave which stores data in a graph of blocks, and each block is linked to two earlier blocks.
Arweave offers the ability for anyone running the software to choose the type of data they wish to store, and it is important to say that Blockweave is specifically designed for the Arweave protocol.
This technology is very similar to blockchain technology that links the collection of blocks containing transactions, but what sets Arweave apart from competitors is its commitment to permanently storing data through unique incentives built around its AR token, the native currency for all Arweave applications.
Arweave’s data storage is backed by sustainable, transparent economics, and users who decide to store data on Arweave must buy AR tokens to pay for distributed data storage. Arweave founder Sam Williams added:
Over time, interest on this one-time upfront payment is given to those that offer hard drive space so that they can profit from their storage contributions. By using extremely conservative estimates for storage pricing, Arweave ensures the long-term viability of the network’s endowment.
Arweave is built and run by its community that filters and screens the transactions in whichever manner it chooses, and if you have an amazing idea for an Arweave application, Arweave will pay you to build it.
AR token has achieved an impressive gain in the first days of November 2021, and it has reached a record high above $92 on November 05.
AR is currently down more than 55% from its peak; still, Arweave is a very promising project, and the price of AR could advance again at levels that we saw in November 2021.
Bears in control of AR
Technically looking, Arweave (AR) remains in a bear market, but the current price level represents good value for what you pay, and maybe now could be a good time to buy this cryptocurrency.
If the price jumps above $50, it would be a strong “buy” signal, and we have the open way to a resistance level that stands at $70.
The strong support level for AR stands at $30, and if the price falls below it, the next price target could be around $25 or even below.
Summary
Arweave is a very promising project and what sets it apart from competitors is its commitment to permanently storing data through unique incentives built around its AR token. According to technical analysis, Arweave (AR) remains in a bear market, but if the price jumps above $50, it would be a strong “buy” signal, and we have the open way to a resistance level that stands at $70.
The post Should I buy Arweave (AR) in February 2022? appeared first on Invezz.
from Market Analysis – Invezz
