After crossing the $200 mark – at the all-time high of $237 – Filecoin (FIL) suffered from market corrections and established a downtrend. At the time of writing, Filecoin stands at $143. The price has increased by nearly 10% in the past twenty hours while the daily trading volume has gone up by 20%. The future price actions will make it clear whether Filecoin has turned bullish or is under bullish pullbacks only.
The technical indicators may be shifting from bearish to bullish as, at the time of press, they stand at a neutral position. Out of the 24 technical indicators, nine stand at a sell position, eight are neutral while seven indicators are giving out a signal of buy. The oscillators are mainly neutral while the moving averages are bearish.
Trader TheDots is bullish on Filecoin in his Filecoin price analysis. Per the trader, Filecoin is under bullish divergence, albeit weak. The cryptocurrency is approaching towards the end of the bull flag where Filecoin established a new time high compared that with the contraction of Bollinger Bands – hinting lower volatility – the trader suggests results in a promising scenario for Filecoin.
The decentralized storage system has been one of the leading cryptocurrencies in the bull run. The price rally of the coin resulted in it being in the top ten cryptocurrencies by market capitalization; however, it now stands at 18th rank in the market. Filecoin’s price rally had been said to be primarily driven by the Chinese community, apart from institutional interest like Grayscale which added the cryptocurrency to its fund.
Filecoin’s trading volume surpassed Ethereum and Bitcoin the day it established its all-time high on the largest Chinese crypto exchange, Huobi. Chinese miners are required to keep Filecoin as collateral which drives demand for the cryptocurrency in the community. Moreover, Filecoin mining has also been becoming increasingly popular amidst shortages of BTC and ETH mining rigs.