FileCoin is a peer-to-peer network that can store and save files, and it gives financial benefits and encryption to ensure that the files are stored unwavering over time.
It is developed on the same software that follows IPFS protocol and allows users to pay to store their files on storage providers. The storage availability and price are not decided by any single company but by a competitive market empowered by FileCoin.
Also, the Filecoin protocol is innovatively prepared to be different from the crowd, it makes file storage and its retrieval more secure, dependable, and affordable than classic centralized storage systems. The Filecoin network contains nodes, storage providers, and validators.
Nodes keep the Filecoin blockchain updated and authenticate messages in every block. Storage providers are obliged to store data on the network, which they are paid and rewarded for in FIL.
Validators are obligated to handle the state of the network, such as accounts, multisigs, and account balances. To store and retrieve data on the network, users need storage and retrieval deals with storage providers or providers.
The storage providers or providers use Proof of Replication (PoRep) and Proof of Spacetime (PoSt) cryptographic proofs.
Also, to run messages, validators have to pay a gas fee, which is paid to the block-making storage provider and is made of the BaseFee, GasLimit, GasFeeCap, and GasPremium.
Filecoin proposes and provides a very secure, somewhat decentralized, and very cost-effective choice to the traditional centralized storage systems.
Filecoin Price Prediction On Daily Timeframe
From last week, the Filecoin crypto asset has indicated bearish behavior and could drop further, having dropped by 4.46%.
At press time, the FIL crypto had declined by 6.26% in the last 24 hours, trading at $6.097. If the FIL crypto price fails to stay above the $5.5 level, it could decline further.
On the flip side, if the demand for the FIL soars and reveals sustainable momentum, the asset price could make progress above the weak high, from the current level. The next milestone for the Filecoin price is $8.
Filecoin Price Prediction As Per Technical Tools
The Filecoin crypto asset is showing bearishness and falling potential as it declines below major 20-day exponential moving averages. If the influence stays persistent and surges more, the price could head downward to other supporting EMAs.
Furthermore, the Filecoin price asset is displaying bearish behavior as MACD shows a bearish cross with a broadening width of the histogram and the RSI is not near the 30 level, showing that the asset is not facing much support.
Summary
The FIL price shows the negative outlook and expectations of the investors and traders about the crypto asset in the daily chart. Filecoin price movement shows a bearish trend at the time of writing as it has taken rejection from weak high and moving downward.
Technical Levels
Support Levels: $5.5
Resistance Levels: $8
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
Source: https://www.thecoinrepublic.com/2024/01/05/filecoin-price-prediction-can-it-break-out-of-parallel-channel/