Before the web3 cycle kicks off, let's look at Internet Computer (ICP), Arweave (AR), and Flux (FLUX) to find the most profitable one. Read more!
The metaverse and web3 technologies were some of the most lucrative themes in the past when Bitcoin (BTC) ran up to $69,000. With web3 technology transforming blockchains and cryptocurrency, allowing them to have real-world use cases, it would be wise to invest in the market leaders. Arweave (AR), Internet Computer (ICP), and Flux (FLUX) are three such projects that have a good potential in the industry, Let's dive into the charts in this technical analysis and use several technical indicators to see what the tokens look like.
If you are clueless about web3 and how it differs from its predecessors, check out our video below!
ICPUSDT on a 1-Day Chart
ICP is close to forming a positive RSI divergence. However, for this to be confirmed, the price must close positively on a daily candle. Consequently, it can be assumed that the price will move down to support at $15. ICP is in a clear downtrend here. For continued upside, the $21.90 resistance needs to be flipped, which potentially could allow for the price to target $28.5. The price would also break the bear market structure on the daily with a close above $20, however, with market sentiment currently being risk-off, this is unlikely.
ARUSDT on a 1-Day Chart
Arweave (AR) has picked up some demand at $29.420, this can be seen by the wick from today. Providing price can hold above this demand zone, it is likely to retest $33.5 resistance. Ideally, AR would flip this area allowing bulls to look for higher prices. It does seem to be consolidating and holding well, potentially for a move back up (providing BTC performs well). There are also plenty of positive daily RSI divergences showing that buyers are present. However, if the price does break below the demand zone, it will likely test $25.5.
FLUXUSDT on a 1-Day Chart
FLUX is also in a clear downtrend. It needs to flip 1.473 to be able to start a leg up. If the token dives below this level, it may move to the lows at 1.138. However, it seems like an extremely strong support level. Therefore, if buyers are present in the market, they should show up and defend this zone. If sellers do manage to break this level, it is likely that FLUX will move down to $0.5.
With all three coins struggling to find confident buyers due to Bitcoin price action, it is good to compare them. This helps to gain a better outlook on which coin will lead the Web3 market when prices start to trend up.
ICP/AR on a 1-Day Chart
The token is currently breaking below the midrange, showing the AR bulls' intentions will outperform ICP bulls. If the price cannot regain support, testing the range low at 0.48 is likely.
If it can reclaim this support zone, it is plausible that it will be able to move to 0.75 next.
This would infer that ICP is likely to outperform AR, however, with continuous rejections at the 50 RSI level, it is likely that the price may hit the lower level in the foreseeable future.
ICPFLUX on a 1-Day Chart
ICP bulls are currently trying to flip the 12.51 resistance into support. If they are successful, the token will outperform FLUX, at least till the price reaches 13.84.
The price is consolidating around 12.50, so there is a possibility that it could move up higher from here. If ICP/FLUX does get rejected at 12.52, it will probably move down to test the demand zone at 10.5. This would be a -14.9% move which would benefit FLUX bulls, therefore until the resistance has been flipped on the daily chart, it is not recommended to go long.
AR/FLUX on a 1-Day Chart
AR/FLUX looks as if it is breaking to the upside. It has a clear bullish market structure, whilst also being in an uptrend for the past two weeks. The next stop is likely 25, which is a large supply zone. Whether AR bulls have the momentum to get the price above this level could be debated.
If the price starts to close below 21.8 then it’ll likely test the bottom at around 18.16. The price has reclaimed the 50 levels on the RSI though, therefore, it is likely to go higher.
Summarizing Everything
- ICP is in a clear downtrend and has been for more than six months. The price looks as if it may test around the $15 level. However, there is a potential for a positive divergence on the daily chart to play out.
- AR reacted perfectly off demand at 29.420, and with plenty of positive daily RSI divergences, the price will look for a new leg up. If the price can flip 33.6, it will move a lot higher.
- FLUX is also in a downtrend. It needs to flip 1.474 to be able to start a leg up.
- After comparing the web3 coins, it can be inferred that AR looks like the best coin to buy and hold, out of the three.
- The entire economy is at a major decision point. With Bitcoin being higher beta to SPX and alt-coins being higher beta to Bitcoin, it is very risky to be longing them right now without being bullish on SPX.
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