FIL Price Drops 12% But The Bullish Grading Holds

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Filecoin (FIL) has been trading with a bullish bias since December 20, soaring 114% to a high of $6.0 on February 16. The price exploded by almost 42% on February 17 with a massive 24-hour trading volume, as indicated by the long green bar. This breakout took FIL price to a higher zone, operating above the $7.3 level for a week before bears took the stage.

At the time of writing, the FIL price is down 12% to $6.86, but the bullish grading remains. Along with the falling prices, Filecoin’s market cap has also plunged 11.68% to $2.7 billion, placing the token at #27 on the CoinMarketCap list. Nevertheless, the token had a lot of trading activity, gaining 61.53% to $780.73 million in the last 24 hours as investors continued transacting with Filecoin.

Filecoin is designed to create a decentralized, efficient, and robust foundation for humanity’s information.

Filecoin Virtual Machine (FVM) Mainnet To Launch Soon

The current bullish sentiment for the FIL token is attributed to the oncoming Filecoin Virtual Machine (FVM) Mainnet launch. The event, slated for March 14, 2023, will bring smart contracts and user programmability to the Filecoin mainnet.

In a recent blog post, several Impact Evaluator rounds have empowered the FVM builders and experts community as plans of assessing and rewarding the most valuable work and projects within the ecosystem continue.

Seven rounds spread across more than 12 weeks are allocating a $75k reward pool. The results from individual rounds populate the FVM Builders Leaderboard, displaying leading projects in the ecosystem.

With the rounds, builders, investors, and peer blockchain ecosystems alike get a means for maintaining an enhanced pulse on projects at the forefront of the FVM launch. These will​​ bring smart contracts and user programmability to the Filecoin blockchain and, in so doing, unleash the enormous potential of an open data economy.

The Filecoin ecosystem also offers users the chance to become a storage provider and earn FIL tokens while contributing to the decentralized storage ecosystem.

A monthly subscription for this storage feature is $2 while offering data security, privacy, and peace of mind. With this move, Filecoin threatens the Apple iCloud storage feature that demands a monthly subscription of up to $100.

Filecoin Bulls Targeting 61% Increase To $11

As the countdown to the FVM mainnet launch continues, FIL bulls are looking to record a 61.05% rally to a new high. As of press time, the token was trading at $6.82. This is down 28% from the February 19 high of $9.4846 before profit-taking changed the narrative in the Filecoin market.

As bulls looked to recover the losses, the price confronted immediate resistance at $8.0. An increase in buying pressure past this level would set the FIL price on course to meet the 78.6% Fibonacci retracement at $8.096. Such a move would mean that investors kept their profit appetite in check, given that the price was rejected recently at the same level.

FIL/USD Daily Chart

Filecoin Price Chart - Feb 25
TradingView Chart: FIL/USD

Past this level, FIL price would revisit the 100% Fibonacci retracement at $9.4946 next, a level last tested recently, but the breakout proved premature. Before that, Filecoin last visited this zone during the second week of August, just before a massive downtrend ensued.

In highly ambitious cases, the price could climb to the $123.6% retracement level at $11.014, briefly tagged on August 1. Such a move would signify a 61% ascension from the current levels.

The bullish outlook drew support from several indicators on the daily chart (above). For starters, the Simple Moving Averages (SMAs) provided potential return points for FIL bulls. The 50-day SMA, 200-day SMA, and 100-day SMA at $5.4, 5.18, and $4.59 respectively, were ideal sheds for bulls to gather strength and scale another run northwards.

Notice the 50-day SMA was moving upward after a recent golden cross when this fast-moving SMA crossed above the 200-day SMA on February 22. This meant Filecoin was preparing for another bull run and buyers were now entering the scene.

Additionally, the relative strength index (RSI) had just changed course from a downtrend to inspire hope among investors. The price strength at 55 hinted at bulls flocking to the market, adding credence to the bullish outlook.

Moreover, the Moving Average Convergence Divergence (MACD) indicator was still in the positive territory above the zero line, and the histograms were still greenish. This indicated the presence of buyers in the market.

Not assuming the overall direction of the RSI and the MACD indicators, some investors were actively selling. The histograms were also fading to show the bears were gaining ground. Accordingly, the FIL price could drop.

If selling pressure continues, FIL price could revisit the 50% Fibonacci retracement at the $6.242 level. Below that, the price could plummet to the $5.4 support level where the 38.2% Fibonacci level and the 50-day SMA converged. Reaching here would be a point of no return for Filecoin price until it revisits the $3.o support floor before investors could make another attempt northward.

FIL Alternative

Instead of focusing on risk-prone tokens, consider CCHG, the native token of the C+Charge ecosystem. The token is in the presale stage, having raised more than $1.46 thus far. With presale stages closing fast, the remaining CCHG tokens from every stage are burned. This means the token is already deflationary, and industry analysts are very bullish on CCHG, saying it will explode in 2023.

Don’t miss out for any reason. Visit C+Charge here to buy your CCHG tokens.

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