Over the past seven days renowned cryptocurrency (FIL) has seen a surprising rise in its market price.
Filecoin (FIL), a prominent protocol for decentralized storage, experienced an impressive surge of 75% by the end of the last week.
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This marks the end of six months of restrained price performance for the coin that was once regarded as the much-valued cloud-storage token.
As the market was trading, the currency was exchanging hands at +1.45% in the press-time, over the past 24 hours the price of FIL has increased by 1.45%.
On February 17th, there was a significant surge in its price after an extended period of strengthening between $5.00 and $5.50, this sluggishness lasted over a month.
By the end of Friday evening, the chart was filled with the green candles.
Experts Have Explained the Reason behind This Sudden Rise in the Price
Last week Bitcoin touched the $24,500 mark, this increase in the price of bitcoin has elevated the prices of almost every popular cryptocurrency.
The price recovery always captured the market throughout the entire weekend, but ultimately came to a halt on Sunday, when the price of FIL just sat below the $10 mark.
The current price level of Filecoin is the highest the cryptocurrency has touched since August 2022.
The market sentiment shows that the next level of resistance for FIL is the $10 mark. It is immensely important for FIL to touch the $10 mark as soon as possible.
If the token managed to touch this level, then it could once more achieve bullish momentum.
The coin, which previously had touched the all-time $237 mark, has now fallen to single digits. It seems that Filecoin is desperate for another price rally.
The past 24-hour market trend shows that Filecoin’s price movement has been subjected to a specific region. The token is doing its level best to get out of that specific region so it can go further higher.
On the other hand, buyers were quick to put increased buying pressure on the coin so it might be able to capitalize on its current hike. Experts are hopeful that strong buying pressure will help FIL to get bulls at its back.
Although FIL has shown some strength at $8, it has to reach the $10 mark as soon as it could. A look at the Filecoin price pattern shows that the token has started to draw a bullish pattern.
Can Filecoin (FIL) Touch Further High?
The past week’s price rally indicates that RSI 14 became extremely hot and reached a high of 85. This shows that currently FIL has been oversold and over-purchased over the past seven days.
Moreover, it can also be seen that RSI still has not been stabilized as of now as it currently is at 76.
As the things stand now it can be seen that FIL is currently bearish. Moreover, chances are also high that the price of FIL might collapse again.
The lower level of resistance has not been tested yet. The decline in FIL price will not be a significant event.
Experts have predicted that if the price of the FIL token declined, it can go all the way low to $5.50. If the coin touches this price mark, it will account for a 34.96% decline in its price.
As things start the future of the FIL coin is uncertain it can go both ways; up and down. But for those who fancy short-term trading, this is the best time for them to add Filecoin to their digital portfolio.
Currently, the token’s market cap is also higher as compared to the past. Despite the fact that this price increase narrative might become irrelevant in the future, now it’s relevant.