The Filecoin price has made a steady uptrend in the past few days as demand crawls back. The FIL token is also rising as investors react to the recent launch of the Filecoin Virtual Machine (FVM) through its Skyr upgrade. The token is trading at $5.5790, which is the highest it has been since June 29th of this year.
Filecoin Virtual Machine upgrade
Filecoin is a Web 3.0 blockchain project that is changing the storage industry. The platform’s goal is to lead the shift from a centralized storage structure to a decentralized one. As a result, anyone with free storage can easily provide it to the network and make money as people store their files.
Filecoin has seen strong growth over the years as people provide vast storage resources to the network. Still, the challenge is that data providers are usually compensated with the FIL coin. As a result, they have seen the value of their holdings crash since the coin has fallen by more than 96% from its all-time high of over $120.
Filecoin is crawling back after the developers launched the mainnet of the Filecoin Virtual Machine (FVM). This FVM is made up of smart contracts and provable storage. As a result, it will unlock many possibilities, such as programmable storage primitives and cross-chain interoperable bridges, among others.
The Filecoin price is also rising after the FIL token was added to Brave Browser wallet. This means that users will be able to access the coin in this wallet. This is notable since Brave has over 56 million users around the world.
Filecoin price prediction
The four-hour chart shows that the FIL price has been in a tight range in the past few days. The coin is trading at $5.553, where it has been in the past few days. This price is slightly above the ascending trendline shown in purple. It has also risen above the 25-day moving average while the MACD has moved above the neutral point.
Filecoin price has also formed a narrow ascending channel pattern. Therefore, I suspect the coin will likely move lower as sellers target the lower side of this channel at $5.20. A move above the resistance at $5.72 will invalidate the bearish view.