The Filecoin price momentum has faded. FIL price is trading at $155.27, which is 35% below its all-time high of $238. It is now the 17th biggest digital currency in the world with a market cap of more than $10.5 billion.
The background: Filecoin is a blockchain project that is in the filesharing industry. The network allows people from around the world to share their free bandwidth and earn FILs from it. The FIl coin can then be exchanged into fiat currencies. Also, the network allows developers to build decentralized file storage projects.
Recently, Filecoin was the talk of the town. This is after the price surged by more than 650% from its lowest level in February this year. At its peak, Filecoin was the 10th-biggest cryptocurrency project. However, recently, the momentum has faded and the price has been moving sideways. This is partly because traders are focusing on other currencies like Dogecoin. Also, it is partly because of profit-taking after its recent rally. So, what next for Filecoin?
The four-hour chart shows that the Filecoin price has been moving sideways in the past few days. It is substantially below its highest point on record and is at the same level as the short and longer-term moving averages.
The currency’s volatility as measured by the Average True Range (ATR) has continued to drop. In technical analysis, this is usually a calm before the storm, meaning that it could soon break out. The key levels to watch are the support and resistance points at $136 and $200, respectively. A move below and above these levels will be a sign of a breakout.
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