The Filecoin price recovery trade has stalled as investors focus on the new Filecoin stablecoin. It has also stalled as Bitcoin has found substantial resistance slightly below $35,000. FIL has a market capitalization of more than $4.6 billion and is the 25th biggest cryptocurrency in the world.
Filecoin news. Filecoin is a large blockchain project whose goal is to decentralize the file storage industry. The project was started by a team known as Protocol Labs. The network allows developers to build storage projects that take advantage of blockchain.
As such, instead of building their own centralized servers or embracing cloud platforms like AWS, the project helps them use the community that shares its free bandwidth. In exchange, the community is paid using FILs. Filecoin is a project that is relatively similar to BitTorrent and Theta.
Filecoin is reacting to news that Filecoin is working with ConsenSys to expand its digital marketplace on the Ethereum network. The team has also created oneFIL, a stablecoin that will be used to fund transactions that are required to support application development. The stablecoin will be backed by other stablecoins like USDCD and USDT. A spokesperson of the network said:
“Each ICHI stablecoin to date is backed by USDC, plus a specific community’s scarce crypto to keep things simple in the early days.”
The daily chart shows that the FIL price has crashed by more than 72% from its all-time high. The coin has also formed a pattern known as a death cross that happens when the 50-day and 200-day moving averages make a crossover.
It is also about 65% above its lowest level this year while the MACD is below the neutral line. Therefore, the coin will likely keep falling as bears target the next key support at $40, which was the lowest level last week. However, a move above the resistance at $70 will invalidate this prediction.
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