Filecoin price analysis: FIL retraces after briefly passing $70
- Filecoin's price surged as a result of strong on-chain and fundamental data.
- Its price gained over 25% on the day, as well as over 65% on the week.
- FIL is now fighting for the $70 pivot point.
Filecoin had a great day as its FIL token gained over 25% on the day. What is the reason for this price spike, and should you consider buying some FIL now?
Fundamental analysis: a series of fundamental factors bring positive sentiment to Filecoin
Filecoin is a decentralized storage platform that aims to store information that is “most important to humanity.” While the project raised $205 million in a 2017 ICO, the launch came much later. The initial launch date was planned for mid-2019, but the mainned went live in mid-October 2020.
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Ever since its launch, Filecoin has seen nothing but approval from the community, which certainly reflects in its price. At the moment, the Filecoin team is working on improving its network as well as on acquiring various partnerships. Filecoin is, along with Chainlink, IPFS, and others, organizing a hackathon that will run from 15 March until 11 April.
Filecoin saw various metrics improve, including its on-chain data, such as the amount of storage available on its network:
FIL posted week-over-week gains of 66.62%, outperforming both BTC‘s week-over-week gain of 3.51% and ETH‘s 1.28% loss. Filecoin is currently the 24th-largest cryptocurrency by market cap, boasting a value of $4 billion.
At the time of writing, FIL is trading for $69.01, which represents a price increase of 43.24% when compared to the previous month’s value.
FIL/USD technical analysis: FIL retracing after passing the $70 mark
Taking a look at the 4-hour chart, we can see FIL’s steady price increase that started on 16 March. The move brought its price from just above $53.50 all the way up to a high of $71.03. Filecoin is now entering retracement mode, with its price slowly dropping below the $70 mark on descending volume.
Filecoin is currently showing signs of fading volume after a massive volume spike. VET’s RSI is currently deep into the overbought territory. However, it seems like it is turning back towards the regular trading range, with its value currently sitting at 76.95.
If we zoom in to the hourly time-frame, we can see the recent spike in price and volume, as well as the follow-up that brought a decrease in both. However, FIL is still quite strong, as the bulls and bears are currently fighting for the $70 pivot point.
Filecoin’s first line of defense is the 23.6% Fib retracement level of $64.5 as well as its 21-hour EMA. On the other hand, the cryptocurrency faces a sell wall above the $70 mark, and only a massive spike in buyers would be able to surpass it.
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