Filecoin Price Prediction: What Next After Today’s Price Drop?

Summary:
• July has been a positive month for Filecoin price, which has seen a growth of 11 per cent. However, today's drop may signal a reversal.

July has been a positive month for Filecoin price, which has seen a growth of 11 per cent. Unsurprisingly, the rise in the price of Filecoin has come at a time when the entire cryptocurrency market has started a new uptrend after the past few months have been tough for the industry, resulting in its market capitalization falling below $1 trillion for the first time in years. 

However, there are other underlying factors that point to the continued growth of Filecoin. The platform is in one of the most popular niches on the internet, file storage, competing with companies such as Amazon and Google, which are the centralized data storage industry leaders.

Filecoin, on the other hand, promises its users better control of their data, including privacy and data security. One of the most significant advantages of the Filecoin Network and other decentralized storage systems is that multiple devices are connected to the network.

Combining these devices’ storage capacity and computing power creates a supercomputer-like network that can store multiple copies of the files. Therefore, when one node in the network fails, Filecoin users can still access their data because the availability of the information is not dependent on any server or company. 

Filecoin Price Prediction

Using the chart below, the Filecoin price hit the $5.12 support level on July 26. Since then, the prices have been in an aggressive push to the upside, resulting in a 16 per cent gain in the markets. 

Today, the trend seems to be continuing the bullish trend to the upside, with the Filecoin price up by 2 per cent. The chart also shows the morning hours of the session were much more aggressive, hitting the $6.2 price level before dropping by 2 per cent to the current price. 

Basing my analysis on the recent price action, I expect today’s trading session to resume the strong aggressive bullish move and possibly break today’s price high of $6.2. I expect the strong bullish trend to continue for the next few trading sessions.

There is a high likelihood that we will see Filecoin hitting the $6.8 resistance level in the next few trading sessions. However, my bullish analysis will be invalidated if the price drops below yesterday’s opening price of $5.65. IT will also mean a possible sideways market or a bearish trend.

Filecoin Daily Chart