After a bullish start to the year, Filecoin (FIL) price is having a pullback. FIL crypto generated 217% returns in during the initial few weeks of 2023. However, the price has been in a downtrend since February 2023. Despite a 40% drop, the price still remains 93% above its February lows which shows that the bulls are still in control.
Bitcoin price flash crashed on Wednesday and tanked the whole crypto market with it. Altcoins like Filecoin crypto were hit the hardest. Till press time, FIL had lost 7.61% and changed hands at 5.78%. Other altcoins also showed a similar price action as markets entered a deeper correction.
Fielcoin EVM Fails To Generate Hype
In one of the most recent Filecoin news, the developers have enabled the Ethereum Virtual Machine (EVM) compatibility on its blockchain. The resulting Filecoin Virtual Machine (FVM) will provide a runtime environment for decentralized applications and smart contracts while unleashing the true potential of an open data economy.
It’s been more than a month since the launch of FVM, but the platform TVL is yet to experience a major increase. This is also a primary reason behind the negative Filecoin price action since the EVM launch. According to DeFi Llama, there is currently only a $2.3 million total locked value on the network, which is nothing compared to major EVM chains in the industry.
Filecoin Price Can Drop At Least Another 10%
It is evident from the following FIL crypto chart that the price has broken below the upwards trendline on the 4H chart. Till now, the price hasn’t closed below the trendline. If it does, Filecoin price prediction will flip bearish. In this event, the first target for the bears will be the $5.19 level which is the next major support. This will be a 10% drop from the current price.
A breakdown below this support will put a retest of the March 2023 lows on the cards. This will be a potential 20% price decrease from the current level. The only way to avoid this bearish outlook is for the price to close above the trendline once again.
I’ll keep sharing my updated price outlook on Filecoin & other digital assets in my free Telegram group, which you’re welcome to join.
