Filecoin (FIL) was one of the top performers during the market crash. While the cryptocurrencies were moving down, Filecoin was on a strong uptrend. However, that is not the case anymore as Filecoin fell by 23% in the past week. Sat the time of writing, Filecoin stands at a price level of $73.08. The price has declined by 6% in the daily timeframe while the daily trading volume also fell by nearly 35%. A period of consolidation may be upcoming for the twenty-third largest cryptocurrency.
Filecoin (FIL) Technical Analysis
The market sentiment for Filecoin is bearish. Out of the total technical indicators, eleven are giving out a signal of sell while ten stand at a neutral position with only three indications signaling buy. The oscillators are neutral while the moving averages are majorly bearish.
After a bullish cross of the 50-MA with the 200MA and the 200-EMA, the cryptocurrency was expected to move upwards; however, the bears overtook the market and Filecoin started off on a downward trend. Filecoin is expected to test various important levels on its downward trajectory. The price may show instability as it tries to find a supporting level. A trader’s analysis shows that the major support level lies at $40. However, the price may not fall so drastically unless the bears are extremely strong. The upside targets for the cryptocurrencies lies at $123 followed by $130.
Filecoin (FIL) – Threat to cloud storage
Filecoin (FIL) is a decentralized storage platform. It acts as a marketplace for buyers and sellers of storage. As we move into digitization, data will become even more abundant and storage of data a greater problem. There has been a recent spike in the demand for cloud storages from Amazon, Microsoft etc. However, the proposition of Filecoin has the potential to kick out centralized storage providers like these tech giants. Filecoin may prove to be a nuisance for the centralized market leaders as some believe decentralized storage is the future of a decentralized world.