- AR trades near the upper boundary of a descending channel, tested for almost a year.
- Breakout above resistance could spark a rally towards $17.78, a 190% gain from current levels.
- Higher lows and rising volume show growing bullish momentum and accumulation.
Arweave (AR) is on the brink of a breakout after nearly a year in a downtrend. Trading at $6.10 with steady volume, the token has gained over 4.5% today and 9.5% this week, setting the stage for a potential rally toward $17.78.
Year-Long Descending Channel Sets the Stage
For close to a year, Arweave has moved within a tight descending parallel channel. This pattern has contained price action, with both upper and lower boundaries holding firm. Recently, AR approached the channel’s upper line near $6.17—a key hurdle.
Source Clifton Fx
Historically, this level has capped rallies, keeping the asset in a downtrend. However, the formation of higher lows in recent months suggests a battle for control is underway. Sellers have kept the upper boundary intact, but buyers are steadily gaining strength.
Breakout Potential and Target Zones
A decisive breakout above the channel’s resistance could trigger a surge toward $17.78. This target reflects a 190.57% gain from the breakout point and corresponds with a previous support zone now acting as resistance. Volume patterns support this outlook.
Buying interest has increased, confirmed by volume spikes during recent rallies. The combination of higher lows and expanding volume indicates growing bullish momentum beneath the surface.
This technical setup points to a potential shift from consolidation to an aggressive upward trend. If buyers hold the momentum the token could ride on the larger alt coins season rally and deliver even more gains.
Signs of Strength in Price and Volume
On October 5th, AR recorded a sharp intraday rally, jumping from just under $5.90 to about $6.30. The move came on increased volume, signaling real market participation. The price held steady above $6.10, showing strong buying interest.
Source CoinGecko
Market cap followed suit, climbing from about $380 million in the morning to over $410 million at its peak. This rise points to growing investor confidence and hints at a bigger shift in the trend.
Arweave’s next big move depends on breaking above and holding beyond the channel’s upper resistance with solid volume. Until then, the asset remains vulnerable to downside risks. Confirmation will be key before traders jump in.
