Why Arweave Was Trouncing Other Cryptos This Weekend

What happened

There were few standouts this weekend in what was generally a sleepy few days for cryptocurrency trading. One notable exception was Arweave (CRYPTO:AR), which as of noon on Sunday was up by more than 10% across the preceding 24 hours, in sharp contrast to the essentially flat performance of investor favorites Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), and Cardano (CRYPTO:ADA).

So what

Arweave was basically a speedy minnow among dozing sharks. The somewhat under-the-radar coin has a market cap below $2 billion, which isn’t anywhere near the almost $900 billion of Bitcoin, the $466 billion of Ethereum, or even Cardano’s $42 billion and change.

Image source: Getty Images.

That means Arweave’s price movements can be sharper than those of the much larger fish. This has been the case over the past few days, aided in no small part by positive coverage in InvestorsObserver.

The financial news and research site, which actively and energetically covers the crypto space, published a fresh analysis on Arweave late Thursday afternoon. InvestorsObserver scored the coin’s sentiment as “Bullish,” with a short-term technical rating of 98 (out of 100), and a long-term technical rating of 96. Meanwhile, the site placed Arweave in the middle of its safe-to-scary risk gauge.

Now what

While investors should avoid trading on any kind of technical analysis (chart-based research based on recent price/volume movements), Arweave does look promising in terms of fundamentals.

It’s the coin that underlies what its developers describe as “a collectively owned hard drive that never forgets,” basically a massive and distributed data storage solution. That makes Arweave an offbeat investment, and a potentially strong choice among crypto assets if it can scale up and become a go-to provider in that niche.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.


Be the first to comment

Leave a Reply

Your email address will not be published.


*