The recently posed outstanding rallies of double digits in July end have left a majority of crypto enthusiasts in dismay. News says Filecoin Foundation has partnered with the Harvard University Library Innovation Lab (LIL). The LIL of Harvard University will be researching the possibilities of using Blockchain technology to preserve digital information. Even a fancy research name has been given to this project called Democratizing Open Knowledge.
This news has helped Filecoin jump significantly from its near sideways trending price action in just three days. Post which profit booking sentiment became heavier and pushed the gains. Currently, the FIL token has been undergoing the third day of negative action. Seems like August 2022 has begun on a wrong footing for FIL.
The latest market capitalization for Filecoin has maintained its position at $2,045,148,554 despite losing significant value in the last two days. The support resistance and moving averages will shift the price dynamics of Filecoin in the coming days. Working on the advanced concepts of Proof of Spacetime and Proof of Replication; FIL offered a much more advanced method of blockchain-based data storage combining decentralization with peer-to-peer storage facilities.
Filecoin has witnessed a major breakout that put it closer to the 200 EMA curve. As the trend intensified, profit bookers took this opportunity to compensate for their previously lost holdings. Falling back to the 100 EMA curve puts immense pressure on buyers to re-ignite the buying trend to succumb to the previous support levels. More about the possible price actions of the coming days in our FIL price prediction.
For FIL price action and technical reasons, the transactional volumes jumped on July 30, creating the first double-digit gains, followed by similar actions on July 31. The rise in such obnoxiously high volumes delivered goosebumps as it indicates something unexpected is about to happen or happening already. FIL token has critical support from the 100 days moving average curve. Current resistance based on price action is $9.29, followed by $15.96, for which support is available at the 100 EMA and breakout pivot of $4.66.
Taking cues from the MACD indicator, which has entered the positive axis for the first time since April 2022, price projection is more towards a positive direction. RSI indicator has lost some value to profit booking but trades at 63, which is extremely close to the overbought zones.
The weekly charts showcase a breakout and upside movement followed by an in-development engulfing candle. Since the support of $4.66 has been tested repeatedly, price action should ideally consolidate and break above the 100 days MA curve of $7.92.
The similarity between the news breakout of collaboration and unusual buying spikes is mere speculation. Filecoin is receiving no benefits other than advanced research on its fundamental growth prospects from a world-renowned university. Such speculation, if proved right, can deliver 5 to 10 times of value gain for Filecoin.