The Filecoin price has pared back some of the losses it made last week as investors rush to buy the dips. FIL is trading at $73, which is 33% above the lowest level last week. This brings its total market cap to more than $5.3 billion, making it the 25th biggest cryptocurrency in the world. It sits between Tron and Aave.
The background: Filecoin is a blockchain project that is in the file storage industry. The network helps people and companies decentralize their file storage process by taking advantage of its users free bandwidth. Its aim is to decentralize a highly centralized industry that is now dominated by the likes of Apple, Amazon, Dropbox, and Alphabet. Its aim is not to compete with these companies but to reduce the cost of operators. People who provide their bandwidth are rewarded with FIL, the native token for the ecosystem. These FILs, on the other hand, are generated by miners just like Bitcoin.
A few months ago, Filecoin was among the best performing cryptocurrencies in the world. Its price rose to an all-time high of $238 in late March. Since then, it has dropped by more than 70% from its all-time high as its enthusiasm waned. Like all cryptocurrencies, its price also declined last week as investors continued to worry about interest rates and regulations. This week, though, its price has bounced back as other digital currencies have recovered. So, what next for the Filecoin price?
The daily chart shows that the Filecoin price has struggled lately. It has fallen sharply from its all-time high. As a result, it has moved below the 25-day and 15-day exponential moving averages (EMA). It also seems to be forming a bearish consolidation pattern. It is also slightly above the important support level at $52, which was the highest point on February 14.
Therefore, in my view, the bearish trend will continue so long as the price is below the two moving averages. If it crosses the two averages, it will open the possibility of it retesting the next resistance at $100.
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