How bullish is Filecoin FIL/USD after this key development?
Filecoin FIL/USD has surged by more than 6% in the past week. The gains come amid positive sentiment for cryptocurrencies. But there is a notable development for Filecoin.
On October 27, Filecoin developers launched a content delivery network dubbed Saturn. The network will help Filecoin reach content bandwidth for dApps and lower the cost of running nodes.
The development is significant for the Filecoin network. In the current setup, participants are required to become Storage Providers for others. That forced SPs to have huge storage capacities, which barred many individuals and was expensive.
With the new Saturn CDN node, participants will only need 1 terabyte of storage, down from the previous 10 TB. Filecoin expects the move to let more individuals contribute to its bandwidth and earn FIL. For this reason, the developers expect Saturn to unlock the next-gen growth of the protocol.
Despite the latest development, Filecoin’s native token is yet to post gains. As of press time, the cryptocurrency had lost by an intraday of 2.36%. A quick technical outlook shows that the price is under pressure.
FIL trades near the June lows amid weak momentum
Source – TradingView
Technically, momentum is weak for Filecoin. Despite the gains in the week, the cryptocurrency maintains a clear downtrend. FIL price is also near the June lows, meaning that the cryptocurrency has lost its July gains.
At the current price, FIL is getting rejected by the 50-day MA. Although the RSI shows some upside, the reading remains below the midpoint. It means that FIL still has more sellers despite buyers entering the market at around $5.
Should you buy FIL?
The latest development is positive for FIL price in the long run. However, FIL remains in a bear market. Buyers would be better waiting for a bullish confirmation.
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