Filecoin is one of the biggest decentralized projects which aims to store humanity’s most important information. The mainnet of the Filecoin came in 2020 and its ICO came in 2017. Filecoin is a peer to peer storage network where users pay for data storage and distribution services. The ecosystem is open source and decentralized which means governance is in the hands of users. Filecoin is based on both proof of replication and Proof of Spacetime. Filecoin was founded by Juan Benet who also created the Interplanetary Filesystem. Recently, the Filecoin ecosystem has now positioned the Filecoin Data Tools project to begin large scale onboarding of customer data. FDT is a set of compute and storage technologies built on the top of Filecoin network. Meanwhile, Filecoin Data Infrastructure (FDI) represents a step towards decentralization. Filecoin has recorded strong adoption in the past few months.
Filecoin has a market cap of $2 Billion and is ranked 32nd in the CMC. Meanwhile, the volume of FIL has seen a decline in the intraday session. The social dominance of FIL has seen a drop in the past few days. Meanwhile, V/M ratio of FIL suggests a consolidated momentum in price.
Will FIL Price Hit the Low of $4 Before a Rebound?
Filecoin price has recently seen a major drop in the price due to the SEC crack down. It has seen a fall of more than 8.5% and can continue the similar trend in the future. FIL price is currently trading near $4.164 with a drop in the intraday session. Filecoin weekly chart hints towards a weak consolidated momentum in price. The upside trend of FIL can see a halt near the value of $5. Meanwhile, the support of the asset price can be seen near $3.85. FIL price is trading below the 50 and 100 Daily Moving Average with an upcoming negative crossover. This can push the asset price down to the next support level.
The RSI of FIL price is near 36 with a strong downside slope in it. The overall sentiment of the RSI is bearish.
Summary
Filecoin has seen a huge decline in price due to the crackdown from the SEC. FIL has been forming bearish candles and can hit the next support levels before a rebound.
Technical Levels
Major Resistance:$5
Major Support:$4
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/06/06/filecoin-struggles-near-major-support-zone/