Filecoin (FIL) Breaks Out of Its Downtrend Movement!

Filecoin is a classic example of utilizing blockchain technology and its security advantages to solve a basic problem. The founder of Filecoin, being a computer science scientist who graduated from Stanford, was critical in the development of such a cryptocurrency. Juan Benet founded Protocol Labs in 2014 to support his prior invention of the Interplanetary File System and Filecoin. The uniqueness of Filecoin is hidden in its name; FIL intends to store data in a decentralized manner that gives maximum security.

The idea behind developing Filecoin was to enable owners to become their data custodians rather than relying on cloud service providers. FIL uses cryptographic techniques never before heard of and has named them Proof-of-Spacetime and Proof-of-Replication.

To one’s surprise, Filecoin has been sponsoring free storage of Wikipedia Copy, which ensures the valuable data of the Wikipedia public remains preserved. Filecoin carries a market capitalization of $4,511,530,381 with a circulation volume of 182 million tokens. With this valuation, FIL ranks at the 38th position.

Filecoin price action was sensational in the first half of 2021, but it seems like FIL hasn’t been able to recover from its crash in May 2021. It fell close to $60 in May 2021 and slowly regained its price above $100 in September 2021. Later, it faced rejection above $100 and registered a continuous fall. Recently, it has initiated a slight recovery after hitting a low around the $18 mark.

With such huge price momentum, it’s hard to ascertain a stable price trend on Filecoin soon. Although the value of FIL has again moved up considerably in the last two weeks, there isn’t anything extraordinary to showcase a higher price trend potential in 2022. Check out some important expected price trends and the FIL coin prediction here!Filecoin Price ChartFilecoin has literally crashed; there is no other way to explain the erratic one-sided decline. FIL token has faced heat in recent months. Getting frequent rejections near its 50 DMA curve showcased a potential for FIL to deliver a breakout price trend but failed to do so in the last six months.

Finally, in the last week of March 2022, we have witnessed a sudden breakout pattern. Following this breakout, FIL is again on an uptrend movement today. This sudden price rise has resulted in RSI hitting an overbought zone since there was a sudden increase in volumes.

$50 was an important support level that aided in retracement during October and November 2021, but it has become a strong resistance level since breaching this level. For FIL to face this significant resistance, it will have to double in from $24.5 to $50.FIL Price AnalysisFilecoin price trend, in brief, has been retracing in nature with suddenly gained valuations stumbling to the ground before it could revive. FIL faces strong support near its historical support of $18, but at the same time, the resistance of $80 becomes key to counter any uptrend momentum on FIL.

Sudden profit booking above this price level indicates this level to be a danger zone even in case of reviving price action and higher valuations.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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