FIL: Filecoin Price Has Crashed by 92% From ATH. Is it a Buy?

Even as most cryptocurrencies retreat, the Filecoin price has held relatively steady on Monday morning. The FIL token is trading at $20.55, about 22% above the lowest level last week. However, it remains almost 92% below the highest point last year, bringing its total market capitalization to about $3.4 billion. It is now the 39th biggest cryptocurrency globally and the biggest one focused on storage.

What is Filecoin?

Filecoin is a blockchain project that seeks to disrupt the vast data storage industry currently dominated by the likes of Google, Microsoft, and Alibaba. The network uses decentralization to help ensure that files are stored across the world. Filecoin nodes, also known as clients, are peers who sync the Filecoin blockchain and validate the messages in every block.

Node operators are then rewarded using the FIL token, which is now the 39th most popular globally. Today, the Filecoin price is holding steady even as Bitcoin and Ethereum prices remain under intense pressure following the attacks in Ukraine and the sanctions against Russia. Its performance is likely because investors expect that the network will continue growing in the coming weeks.

Filecoin price prediction

The daily chart shows that the FIL token price soared to $240 in 2021. Since then, the coin has crashed by more than 92% and is currently hovering near its all-time low. The bearish trend accelerated when the coin moved below the key support level at $38.95, the lowest level in July last year. 

Filecoin is still below the 25-day and 50-day moving averages, while the MACD has moved below the neutral line. Therefore, there is a likelihood that the Filecoin price will continue its bearish trend as bears target the next key support at $15. This view will be invalidated if it moves above $30.