The Filecoin price strong momentum has faded. The FIL token is trading at $154, which is 35% below the year-to-date high of $237. Its market value has crashed to more than $9.98 billion and its ranking in the crypto industry has fallen to 15.
What happened: Filecoin is a blockchain project that is pioneering the decentralized file storage industry. The project is relatively similar to Theta, which is also trying to decentralize the video storage and distribution industry. The idea is that instead of paying loads in servers, companies can use a decentralized network to store their files. Users, on the other hand, can make money by offering their free bandwidth.
The Filecoin price has also rallied because of China. Indeed, in the past few months, the currency has boomed in Chinese trading platforms. Experts point to the fact that the government has allowed Filecoin mining because of its agenda in the internet infrastructure. Further, many Chinese have been pumping the coin in the popular platforms like WeChat.
On the four-hour chart, we see that the FIL price has been in a strong downward trend recently. It has fallen by more than 35% in the past few weeks alone. This was an expected move considering that many investors were significantly profitable.
Notably, the price is now at the important support considering that it is along the ascending trendline. Therefore, a move below this ascending trendline will be a signal that bears are fully in control. This will see the price drop to the next key support at $140.
