Filecoin has lost 15 per cent of its value in May. This is a continuation of the long-term bearish trend that the cryptocurrency has been in, which has resulted in it losing 28 per cent in the month of April and 58 per cent since the year started.
However, even with the current drop, Filecoin is one of the most promising decentralised platforms in existence today. The platform combines many elements of file storage, distribution systems and blockchain technology to deliver quality services to its users. The platform’s uniqueness in the data storage industry also comes from the fact that it uses a peer-to-peer network while still being able to provide economic incentives and proof to ensure the data is being stored correctly.
Looking at their main competitors in the market today, such as Amazon S3 and Google Cloud Storage, they also have an edge in some areas. For instance, they provide hypercompetitive pricing compared to mainstream file storage platforms. Furthermore, unlike other platforms, reliability statistics are checked by the network and the public. This gives the user the ability to gauge the services they are subscribing to. However, their competitors self-report on such data, which sometimes can be skewed to favour them. Therefore, even with the current price drop, Filecoin is likely to grow, and prices might recover in the coming weeks or months.
Filecoin Price Prediction
Despite Filecoin being bullish in today’s trading session, the cryptocurrency is still in a strong bearish move, losing 15 per cent in the past three trading sessions. Looking at the daily chart below, the Williams Alligator and the RSI indicator also show the prices are still in a very strong bearish market.
Therefore, my Filecoin price prediction expects the price to continue falling for the next few trading session. Today’s gain in price is likely a price correction that will see the cryptocurrency resume its bearish trend. I expect the prices to trade below $12 in the next few trading session. There is also a high likelihood of setting new price lows and breaking the price level of $12.3, which has not been broken since October 2020.
Filecoin Daily Chart
