Derivatives Traders In Action: Is Arweave The Next To Join Crypt

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Derivatives Traders In Action: Is Arweave The Next To Join Crypto Rally?
Arweave price has been in a consolidation phase for the last two months.
The Open Interest contracts have noted substantial growth over the past week indicating renewed Investor's confidence.

For the last two months, Arweave has been moving in a consolidation and has failed to breach the higher supply zone. Now, the positive trajectory of the broader market is shaking Arweave to break out of its comfort zone.

The intraday rise of 8.29% and counting indicates that AR bulls have awakened and are attempting a trend shift. The long term trend outlook has not been supporting bulls for the last couple of months due to which it was difficult for the bulls to survive.

However, the improved sentiments in the broader market as well as support from the derivatives traders has added a new hope for the bulls to make a trend reversal. The price is approaching a crucial zone from which whoever takes the lead may drive the trend.

Let's analyze all the factors that may contribute to deciding a clear trajectory of Arweave and help investors make a decision out of it.
Derivatives Traders Bring A New Hope Of Optimism In Arweave
Over the past three months, Arwevae had been under the control of bear and has been declining losing the gains. The AR price dropped nearly 56% of the annual high which was recorded in May at $49.71. With a market cap of $1.41 Billion, Arweave ranks 52nd in the crypto space.

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However, a weekly rise of 14% including an intraday rise indicates a comeback by the bulls. Moreover, the recent comeback by AR price has been backed by derivatives traders. The 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 which has now increased to $55.6 Million. An $18.9 Million i.e. 50% jump in the Open interest contract suggests a recovery in the AR price.

Along with the development of Open interest, one more metric has caught the attention of analysts, Social metrics. The Social metrics including social volume and social dominance depict the increasing or decreasing participation of social users over different social media platforms.

As from the charts, the social metrics curve was headed upwards indicating a growth in the participation of the social users.
Can Arwevae Be A Good Asset To Invest In October?
The recent sessions have saw continuous efforts from the bulls which has helped the crypto bottom out and recover some losses. However, the long term trend outlook still favors the selling side.

The bulls need to overcome few challenges in order to turn the table in their favor. on the higher side, the 200 day Exponential moving average at $24.9 level and recent supply at $26.3 levels 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 at the moment. 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 points towards a bullish continuation. Arweave could be a good pick for Investors in October if the price flips the recent supply into demand.