Tech

Filecoin remained in investors’ favor with these updates: Will FIL rally?

01/22/2023
Bitcoin Ethereum News
  • Chainstack collaborated with Filecoin for the FVM Space Warp Initiative.
  • Market indicators were bullish, while the metrics supported the sellers.

Filecoin’s [FIL] performance over the last few days was commendable on the price front. CoinMarketCap’s data revealed that in one day, FIL registered over 13% gains, which was higher than several other cryptos with a larger market capitalization. 

Read Filecoin’s [FIL] Price Prediction 2023-24

The crypto’s price increased by over 11% in the last seven days. At the time of writing, it was valued at $4.96, with a market cap of more than $1.8 billion. 

FIL’s surge can be attributed to this

A major reason behind the current bull rally might be the partnerships that Filecoin has formed over the last few weeks. The latest one was with Chainstack to launch a new program.

Image

Chainstack collaborated with Filecoin on the FVM Space Warp Initiative, which is a program leading up to the launch of Filecoin’s Virtual Machine on the mainnet in March 2023. 

FIL’s daily chart also painted a strong picture for the token. The Exponential Moving Average (EMA) Ribbon displayed a bullish crossover. The MACD’s reading also complemented that of the EMA Ribbon, as it, too, suggested a bullish advantage in the market.

FIL’s On-Balance Volume (OBV) remained relatively up, and, when coupled with the Bollinger Band’s data, further increased the chances of a continued price pump. However, the Relative Strength Index (RSI) was about to enter the overbought zone, which might be troublesome. 

Source: TradingView

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The other side of the story 

Despite the market indicators being in favor of the buyers’, things on the metrics front did not look promising. For example, FIL’s demand in the derivatives market decreased, which was evident from looking at its Binance and DyDx funding rates.

The network’s development activity also decreased in the last few days, which was a negative signal for a blockchain. Though the metrics were bearish, positive sentiments around FIL increased, reflecting the crypto community’s trust in the token. 

Source: Santiment

Source: https://ambcrypto.com/filecoin-remained-in-investors-favor-with-these-updates-will-fil-rally/