Filecoin prices have had a rough year, losing 45 per cent of its value in 2022 alone. The cryptocurrency has also spent most of its time in the past few months in a bearish trend. The Filecoin has continued its bearish move in today’s trading session, losing almost a percentage point.
Filecoin is an open-source, decentralized public cryptocurrency that intends to change how file storage is handled on decentralized platforms. In the past few years, other competitors, also looking to get into the file storage industry and use blockchain technology, have entered the crypto market.
Unfortunately, this has resulted in a competition they may not have anticipated. Although Filecoin is still among the largest digital file storage crypto, other alternatives such as Storj, Siacoin, and Arweave have made huge strides, and that may have made investors uneasy.
Looking at the daily chart below, we can see that Filecoin prices have been aggressively trading to the downside for months. We can also see that today’s trading session is showing is bearish. The prices are also coming from the upper trendline of the descending channel, which can explain why the prices have been very aggressive to the downside.
The prices have closed the markets above the opening price in the last two trading sessions, with a price gain. However, today’s trading session is poised to continue the long-term bearish trend. Currently trading at $19.24, the cryptocurrency is likely to continue dropping until it hits the recent support level of $16.97.
when the prices hit the support level, there is a high likelihood that the prices will reverse the upward and have a short bullish move. This is a repeat of what has happened in the past few months, since January, whereby Filecoin prices have not been able to break to the downside of the support level. However, there is also another likelihood of a breakout which is likely to result in Filecoin prices trading at $15.
This post was last modified on Apr 14, 2022, 15:13 BST 15:13