Filecoin has put on a strong show over the past ten days and gained 46.7%. Nonetheless, at the current price of $26.153, it is 810% below its ATH, which it hit exactly one year ago. However, it has made substantial gains recently, following a breakout from the long-term support of around $16.84. FIL has spent most of Q1 of 2022 moving sideways, partly attributable to minimal action in its fundamentals. Indeed, assets like Terra’s LUNA and VeChain’s VET have fared much better than the rest, thanks to a strong show in market fundamentals.
FIL is riding on the current market wave and could relapse
Filecoin is a decentralized cloud-based data storage platform comparable to Dropbox and is billed as a competitor to centralized data service providers such as Amazon Web Services (AWS). However, it has done little to stimulate notable investor interest. Despite attracting a $14 million investment by NexGen Cloud in early March, its current market momentum is most likely a result of the general crypto market resurgence and not Filecoin’s fundamentals.
Therefore, the network’s absence of significant fundamental action will likely fall back to the sub-$20 figures if the current crypto market wave dissipates. Nonetheless, FIL bears are likely to hold on to their positions. Also, they could increase their portfolio sizes due to FOMO, given that the coin has previously touched three-digit figures.
Filecoin price prediction
FIL bulls will likely be targeting the $30 mark, which is currently a psychological barrier and a long-term resistance level. Therefore, a move above this level will signal the possibility of a sustained uptrend. However, for that to happen, FIL needs to stay above $22.158.
In addition, the OBV indicator is making higher highs and higher troughs, while the 20-EMA is almost crossing above the 50-EMA. These indicators signal the likelihood of continued bullishness, making the $30 mark a viable target. However, if the price falls below $20.263, it will invalidate the bullish view.