- Summary:
- The Filecoin price has tumbled sharply. We explain why the coin will likely drop to $10 in the near term as the sell-off continues
The Filecoin price has dropped as the recent recovery fades in the past four straight days. The FIL token is trading at $19.20, about 14% below the highest point this week. The losses mean that the coin has erased about 92% of its value from its all-time high. Its value has slipped to about $3.3 billion, while its global ranking has dropped to 42.
Filecoin is a leading blockchain platform disrupting one of the biggest industries today: file storage. It is a sector currently dominated by Amazon, Microsoft, and Alibaba. Instead of using data centres located in fixed places, Filecoin’s goal is to ensure that anyone can participate in the industry.
For example, if you have a computer with 1TB of storage, which you don’t use, you can provide it to the network and be rewarded using the FIL token. The platform aims to create an ecosystem that spans around the world and offers better solutions.
However, the Filecoin price has retreated for several reasons. First, competition among storage blockchain projects is rising. Some of its competitors are the likes of Storj and Arweave. Second, it needs to do a lot of public education on how it works. Third, some data providers could be critical about using the token because of its volatility. And finally, many people love the simplicity of centralised platforms’ storage platforms.
Filecoin price prediction
The daily chart shows that the FIL price has been in a bearish trend in the past few months. And the gains it tried to make this week have faded. Filecoin downward trend is being supported by the 25-day and 50-day moving average. It is also slightly above the key support level at $16.8, the lowest level this year.
Therefore, the next key reference level for the coin is at $16.8. If this happens, the next level to watch will be at $10. This view will be invalidated if the coin moves above $22.
