Decentralized storage Arweave (AR) Coin previous month teamed up with Meta to store non-fungible tokens (NFTs) on Instagram. This news was disclosed by project CEO and co-founder Sam Williams announced it on Twitter.
After the news AR token surged more than 60% in just 2 days and is now down more than 93% from the previous all-time high of $91
What is the reason behind Arweave (AR) Coin dumping
When Meta and AR took over the partnership of decentralised data storage on November 3, token prices jumped from $10 to $17 in just 48 hours. We all know the price surged because of positive news, but according to Coinglass, November 3 is the biggest liquidation day for AR perpetual traders.
According to the data, the AR market structure was already in a downtrend when the luna incident occurred, but when the news broke on November 3rd, the price did not surge because of the positive because it was a heavy short squeeze.
AR Coin is a fundamentally good project as per the use case but at this time all great projects are down more than 90% you can read this article for more exposure
Read More: Cosmos ATOM Chart Analysis says broke Crucial Level $8.7 here all you need to know
Technical Analysis of Arweave (AR) coin
AR Token chart shows extreme bearish in the upcoming day but if we see the bigger time When Luna Aftermath AR reaches the most important support zone, which is the $7 blue line in the image below.
On 7 May When LUNA UST event the price of the AR token is a $7 to $18 rangebound then after September Ar is moving in the tied range for a whole month but when on Nove 3 Meta integration boomed the price towards the $17 dollar which is almost same high on Agust.
FTX Drama and Current uncertainty of the market the AR token price break the crucial Support and then make the new low if the Weekly candle closed below the support then we see a retest of the support and further downwards if the situation is not good in crypto.
Closing Thoughts
The Arweave Coin dumping is the reason behind the uncertainty and recent bad events which hurt the market momentum So the dip when everyone is fearful to sell the coin when everyone is greedy.
