Filecoin is a peer-to-peer network that offers secure and reliable file storage and retrieval services. It uses economic incentives and encryption to ensure the long-term preservation of files.
It is based on the same software that implements the IPFS protocol and enables users to pay for storing their files on storage providers. The storage supply and price are determined by a competitive market powered by Filecoin.
The Filecoin network consists of nodes, storage providers, and validators. Nodes maintain the Filecoin blockchain and verify messages in each block. Storage providers are responsible for storing data on the network, for which they receive FIL tokens as payment and reward.
Moreover, to execute messages, validators have to pay a gas fee, which is given to the block-producing storage provider and consists of the BaseFee, GasLimit, GasFeeCap, and GasPremium. Filecoin provides a very secure, somewhat decentralized, and very cost-efficient alternative to traditional centralized storage systems.
Filecoin plummeted by 8.75% in market value and optimized by 62.2% in trading volume in the last 24 hours, as per the CoinMarketCap, a crypto data analysis website. Its market value is $2,371,446,739 and its trading volume is $254,327,109. There are 498,293,644 FIL assets in circulation.
Can FIL Crypto Price Reach Demand Zone?
The Filecoin price was in an uptrend and surged greatly from the demand zone and reached the supply area from $3.00 to $8.00 on the daily chart. However, the FIL crypto has shown a sign of a downtrend as the price slumped from a vital level of around 8.00 on the charts.
The FIL crypto asset is showcasing a bearish character and is expected to decline further. It slipped out of the broadening channel. The recent FIL price is declining on the daily chart and can stretch the downtrend up to the demand zone. This could give a consistent downtrend move on the chart in the upcoming sessions.
The FIL crypto seems like it is geared to decline as it has struggled hard to overcome the resistance level and plunged to the lower levels by violating the uptrend and the swing low has breached as well.
Furthermore, the FIL crypto is displaying bearishness and downtrend possibility as it falls beneath the major trend 20, and 50-Day EMAs, which has advanced by the seller’s surge. If the influence of the sellers advances, then the FIL price could decline further, and move beneath towards the support as well.
The technical tools indicate that the FIL asset is in a bearish trend as MACD generated a bearish cross with a broadening histogram in the indicator which is at -0.147. Meanwhile, RSI is at 35 which faced the rejection from its 14-SMA smoothened line, suggesting that the crypto asset is not oversold and can continue its downward direction until it reaches somewhere around 30 level.
As of now, the CMP is at $4.774 with an intraday decline of 5.32%, and a 24-hour trading volume is 250.114 Million.
Therefore, if the downtrend continuation continues and slips immediate support it could consume lower-level supports and plunge to $3.00, which is also a demand zone.
On the flip side, if the buyers increase, the downtrend could flip to an uptrend and it could reach back to $8.00 and test upper levels.
Summary
The FIL crypto has shown a sign of a downtrend as the price slumped from a vital level of around 8.0 on the charts.
The FIL crypto is displaying bearishness and downtrend possibility as it falls beneath the major trend 20, and 50-Day EMAs. Therefore, if the downtrend continues and slips from the immediate support, it could consume lower-level supports and plunge to $3.0, which is also a demand zone.
Technical Levels
Support Levels: $3.0
Resistance Levels: $8.0
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/2024/01/23/filecoin-crypto-will-fil-crypto-price-optimize-reverse-or-fall/