The Filecoin price is bouncing back after it crashed to the lowest level since Saturday in the overnight session. The FIL token price is trading at $75.60, which is about 8.50% below the highest point this week. This brings its total market capitalization to more than $7.45 billion, making it the 24th biggest coin in the world.
Filecoin is a blockchain project that enables developers to build decentralized storage products. Some of the products that can be stored in Filecoin’s applications are company files, contract data, personal files, video, and dapp websites.
The concept behind Filecoin is simple. Instead of building storage data centers, companies can take advantage of the decentralized network to store these files. The lifecycle starts when a user pays a miner to store their files. The miner then commits publicly through Filecoin’s blockchain to storing the file. The network verifies the transaction and the files are stored. FIL is the native token used in this ecosystem.
The Filecoin price is attempting to bounce back after the developers partnered with Polygon with the goal of building a bridge between the two. The collaboration will start with the recently Filecoin-Polygon bridge by Textile. Now, the two companies are offering free storage to developers in a bid to accelerate the Web3 interoperability. They are also planning to launch a hackathon to lure more developers.
This announcement came a week after Filecoin devs announced that they were partnering with Mask Network to bridge the gap between Web2 and Web3.
Still, the overall overnight weakness of the FIL price was because of the overall performance of Bitcoin. After soaring above $50,000 during the weekend, the coin retreated to below $49,000 in the overnight session.
The four-hour chart shows that the FIL price has been in an overall bullish trend recently. Along the way, the coin formed an ascending channel pattern that is shown in blue. It is currently between this channel. The price has also moved below the 25-day and 15-day moving averages. It also seems like it has formed an inverted head and shoulders pattern and is now in the right shoulder.
Therefore, there is a likelihood that the coin will rebound as bulls target the key resistance at $100. To do this, bulls will need to first move above this week’s high at $82. On the flip side, a drop below $65 will invalidate this view. Just four-weeks ago, I predicted that the Filecoin price would rise to $60.