The Filecoin price has been in a strong bearish trend in the past few months. FIL is trading at $17.11, which is the lowest it has been this year. The price is also an important area of support and is about 93% below its all-time high. Its market cap has crashed to about $3 billion while its ranking among cryptocurrencies has crashed to 42. Filecoin is a leading blockchain project that aims to disrupt the storage industry that is currently dominated by leading companies like Microsoft and Alibaba. The platform’s idea is relatively simple.
Instead of companies investing billions of dollars in data centers, it can offer a similar platform using a decentralized option. People from around the world can easily provide their free storage and earn an income doing so. While the idea is good, the main challenge is that Filecoin is not a stablecoin and its price tends to be volatile. Therefore, there is a possibility that many people will reject the approach because of the risks involved in using the network.
The use case for Filecoin is strong. For example, some developers are using the platform to build decentralized Content Delivery Networks (CDNs) such as those offered by Fastly and Cloudflare. One of these apps is known as Myel. It is also possible for people to use its network to build decentralized VPNs.
Filecoin price prediction
The four-hour chart shows that the FIL price is currently sitting at an important support level. It has struggled moving below this level several times this year. The coin has also formed a descending triangle pattern and moved below the 25-day and 50-day EMA. The moving average convergence and divergence (MACD) have moved below the neutral level.
Therefore, there is a likelihood that the coin will continue falling in the near term. Also, a descending triangle pattern is usually a bearish sign. Therefore, there is a likelihood that the Filecoin price will keep falling as bears target the next key support at $10. This view will be invalidated if the price moves above $20.