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According to CoinMarketCap, the cumulative crypto market capitalization surged by 1.24% over the past 24 hours. Its current value sits at $1.11 trillion. Notably, Bitcoin and Ethereum show 24-hour price trends upward. While BTC gained 0.37% at $24,271.19, ETH hovers around $1,665.22 after reclaiming by 1.25%.
Several altcoins have also recorded some gains, although most are in red. However, Filecoin has proven outstanding with its weekly price gain. Its 7-day price gain revealed a surge of over 45% in value.
Even though FIL is trading at $7.87, indicating a drop of 3.85% over the past 24 hours, investors wonder if the token can test the $10 level in the coming days.
Forces Driving FIL’s 7 days Price Gains
FIL is the native token of the Filecoin decentralized storage network. The protocol provides a reliable and secure data storage option for investors within the DeFi ecosystem.
The price trend for Filecoin has been fluctuating over the years. A closer look at FIL’s historical data shows that the token hovered around the $4 region between November 10 and December 15, 2022. But FIL dipped toward the $3 level and further to the $2 level from December 16 last year as the pressure within the crypto industry grew from the sudden implosion of the FTX exchange.
However, FIL started an upward move in early 2023, with the token closing at $3.11 on January 1, 2023. From January 14, FIL climbed into the $4 region and maintained a progressive bullish trend in February as well. Its 30-day and 60-day price change is more than 45% and 80%, respectively.
Filecoin boasts a market cap of $3.13 billion and ranks as the 24th top crypto asset per CoinMarketCap. Following its recent price performance, investors’ interest seems to be growing. The 24-hour trading volume is currently around $835.5 million, with FIL’s market dominance at 0.28%.
Analyzing the recent price growth for Filecoin, the crypto asset may hit the $10 region due to some of its functionalities. Filecoin supports the DeFi system by allowing files to be hosted on its hard drives. It also rewards miners with FIL tokens for providing storage.
Some recent activities in the network now seemingly sustaining its price include the FVM (Filecoin Virtual Machine) launch, stated to be the largest upgrade since the mainnet launch.
Also, the Filecoin community has been bubbling with activities as they await the FVM launch. Notably, the network completed FVM hackathon as it prepared for d-day. According to the Twitter post, it was a very successful adventure for developers.
FIL Price Prediction-Will It Hit $10 Soon?
Filecoin is trading in the red today, forming a third consecutive red candle on the daily price chart. The asset recoiled from its previous gains in the past week. However, it is still trading above its 50-day Simple Moving Average (SMA) and 200-day SMA, which is a bullish signal in the short and long term.
Also, the Relative Strength Index (RSI) is at 68.61, close to the overbought region of 70. This bullish signal indicates a possible trend reversal in the coming days. FIL Moving Average Convergence/Divergence (MACD) is above its signal line and reflects pressure from the bulls to resume the rally.
The support levels are $5.93, $6.77, and $7.41; the resistance levels are $8.88, $9.72, and $10.35. If the $7.41 support holds, it may trigger a trend reversal to the upside. FIL may return to the $8.88 level in the coming days. However, a further price increase to $10 might be in the long-term for the asset.
Cryptocurrencies are volatile and can deviate from predicted price behavior due to macros and market sentiments. Proper research, analysis, and risk management techniques are essential for all crypto traders.