thecoinrepublic.com
- Filecoin has been in a downside trend for a past couple of days inside a parallel channel
- FIL price has not seen a strong recovery as compared to other altcoins. It is currently up by 0.98% in ETH pair
Filecoin aims to change the way we store and share our data online. Filecoin was first described back in 2014 and was founded by Juan Banet who also created IPFS. It uses blockchain technology to create a decentralized storage network which allows users to be custodians of their own data. Filecoin incentivizes their users to contribute their unused space of their drive to the protocol. The decentralized governance of Filecoin gives power to the community. It makes it more secure and reliable as compared to others present in the market. Filecoin also reduces the expensive cost of data centers making it more valuable to their users . FIL has a negative ROI with a drop of over 97% from its all time high.
Filecoin has a market cap of $2.2 Billion and is ranked 29th in the cryptoverse. Volume of FIL has seen a slight drop in the intraday session. Volume to market cap ratio of FIL suggests a consolidated trend in price.
FIL Moves Towards The Support Level
Filecoin has been in a downward trend from past couple of weeks despite a major recovery in the Cryptomarket. FIL is currently trading near the value of $5.5 with a slight increase in the intraday session. It is trading in a downside parallel channel and can hit the support level, if it fails to give a breakout. FIL is currently inching towards its support level which can be seen near $4.5. Meanwhile the resistance of the asset price can be seen near $8. It is trading below the 50 and above 100 Daily Moving Average. If it sees a breakdown below the 100 DMA a strong downside momentum can be seen in the future.
The signal lines of MACD are hinting towards a negative crossover in price. The bars of MACD are also favoring a downside trend in price.
Conclusion
Filecoin has not seen a recovery despite a bounceback in overall market. It is currently in a downward parallel channel. Various analysts are expecting a strong recovery in price in future.
Technical Levels
Major Support:$4
Major Resistance:$8
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.