A recent surge in Bitcoin prices has sparked a positive trend among alternative cryptocurrency projects. One standout is Arweave (AR), which has shown upward momentum over the past few days. Bulls successfully pushed the price above the key resistance level of $47.51 on May 17, although sustaining these gains has proven challenging. Currently, bears are testing the support at the 20-day EMA around $40, a critical level to monitor.

If Arweave rebounds strongly from this support, it would indicate bullish sentiment with potential for a breakout above the psychological barrier at $50. In such a scenario, the AR/USDT pair could target $68. However, a sharp decline below the 20-day EMA might signal bearish pressure, potentially leading to a correction towards the 50-day SMA at $35.

On the 4-hour chart, a rising wedge pattern is forming, with immediate support at the 20-day EMA. A breach of this level could drive the pair towards the wedge's lower boundary, potentially testing levels at $38 and $36. Conversely, a rebound from the support line or a breakout above the wedge's resistance would suggest renewed bullish momentum, negating the bearish outlook and paving the way for a rally towards $68.

In summary, Arweave's recent performance reflects broader market dynamics influenced by Bitcoin's rally. Investor sentiment remains pivotal as technical indicators point towards potential outcomes that could shape AR's short-term trajectory.