Filecoin is a decentralized storage network that utilizes a crypto-token called FIL. The network allows users to rent out their spare storage space to others while also allowing users to purchase storage space from other users. The network is built on top of the Interplanetary File System (IPFS), which is a peer-to-peer protocol for storing and sharing files.
Filecoin uses a consensus mechanism called “Proof-of-Replication” to ensure that data is stored reliably and that storage providers are rewarded for the storage they provide. Miners on the network are responsible for providing storage and verifying the integrity of stored data. They are rewarded with FIL tokens for their contributions.
Filecoin aims to provide a decentralized alternative to centralized storage providers such as Amazon S3 and Google Drive. By utilizing spare storage capacity from users worldwide, it aims to create a more robust, efficient, and cost-effective storage network.
Additionally, Filecoin is focused on providing data privacy and security, with the network design emphasizing the use of encryption to protect data. The Filecoin network launched its mainnet on October 15, 2020, and since then, it has seen significant growth in the number of miners and clients participating in the network. The FIL token has also seen significant price volatility since its launch, reflecting the growing interest in the project.
Filecoin price action has shown a new life since breaching the worried zone of the 100 EMA curve. The positive reaction of buyers from this price band has resulted in a significant uptrend in the last four days. Read FIL price prediction to know how long this trend will last for the token.
Filecoin witnessed a drastic setback in mid-December when it crashed drastically in a single day. The support of $2.59 took a positive reaction with an uptrend from the level taking the FIL to above $5.2 levels. The uptrend has shown tremendous strength as prices are moving even with a drop-down to the 100 EMA curve.
The FIL uptrend is currently facing resistance at the peak, but with the support offered at the 100 EMA curve, there should be a positive rally towards the immediate resistance of $6.70. The strong resistance is placed at $10.1, showcasing tremendous uptrend levels for the price band.
The support from the buyers’ side would be a critical factor behind FIL’s possibility of reaching the price band of double digits. RSI, for the short term is trading in the overbought zones, while the MACD indicator for FIL has also entered positive territory.