Filecoin (FIL), a cryptocurrency focused on decentralized digital storage, has experienced a significant price surge of 40% in the last week.
Since the beginning of this year, Filecoin has surged over 121% and is now targeting a price of $7 to bring excitement to investors after moving away from its lowest point during the crypto winter.
What is Filecoin (FIL)?
Filecoin is a decentralized peer-to-peer digital storage marketplace that utilizes blockchain technology.
It is built on top of the InterPlanetary File System (IPFS) and enables users to rent out their unused hard disk space in exchange for FIL tokens. Let's take a look at how Filecoin is disrupting the online storage space.
In 2014, Juan Benet introduced Filecoin through his proposal: Filecoin: A Cryptocurrency Operated File Storage Network. Similar to Bitcoin, this was a blockchain network, but with nodes that could store data guaranteed by a proof-of-retrievability component. Protocol Labs developed Filecoin.
Filecoin is sometimes referred to as an incentive layer on top of IPFS. This means that users are rewarded with FIL tokens for renting out their storage space.
Prices Have Skyrocketed
NewsBTC reports that, on February 15, the Filecoin price saw a 4.5% increase as the global cryptocurrency market began to rebound. However, at present, the token has exceeded expectations and achieved a significant price gain of 23.08%, currently trading at $6.77.
Filecoin has emerged as one of the most consistent performers in the global cryptocurrency market, with a seven-day gain that puts FIL up by 12.9% over the same timeframe. Additionally, FIL outperforms similar cryptocurrencies, currently up by 18.9% compared to their 9.9% increase at present.
As with all other cryptocurrency assets, Filecoin has experienced both highs and lows. According to historical data, on October 15, 2020, Filecoin traded at $61.04. However, starting on October 16, 2020, the FIL price began to correct, dropping to $23.73 by October 22, 2020.
Throughout December 2020, the FIL price remained consolidated between $29 and $30 until it reached an all-time high of $236.84 on April 1, 2021, during the crypto bull run.
The recent surge in the price of Filecoin may be attributed to the improved investor sentiment and the overall increase in the global cryptocurrency market cap about seven weeks ago. In addition, there have been some recent developments in the Filecoin network, including the upcoming launch of the Filecoin Virtual Machine (FVM) on March 1.
The Filecoin community has been eagerly anticipating the launch of FVM, which is a runtime environment for smart contracts on the Filecoin network. This is believed to be one of the factors driving up the price of FIL. As the launch approaches, some companies, such as Eclipse, have already started building with FVM.
FIL Price Technical Analysis
Filecoin has seen a significant 23% increase in the last 24 hours, and it is now trading at $6.77. The asset is currently trading above its 50-day Simple Moving Average (SMA) and 200-day SMA, which is considered a positive signal for investors.
FIL entered an uptrend on February 14 and has continued to climb, forming a large green candle on the price charts. The support levels are $4.60, $4.99, and $5.19, while the resistance levels are $5.78, $6.18, and $6.37.
The Relative Strength Index (RSI) currently reads 67.84, approaching the overbought zone of 70. The indicator is also trending upwards, indicating that it may increase further in the future. Additionally, Filecoin’s Moving Average Convergence/Divergence (MACD) has crossed over the signal line, reflecting the bullish pressure in the market.
Filecoin is now trading above its previous resistance levels, which have turned into support. The token may retrace to retest the $6.37 level, but it could also potentially reach $7 in the coming days. [pc]
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