In the past five trading sessions, the Filecoin price has traded sideways. Today, despite it going up by more than 2 per cent, the trend is looking like a continuation of the previous session’s sideways market.
Before the current sideways market, the Filecoin price was trading in a strong downward trend, which had seen its prices plummet by 43 per cent from its monthly high of $11.3 to price levels of $11. The drop was in response to the current cryptocurrency market environment, which has also been in a bearish trend.
Throughout the month of August, there has also been concern that the latest inflation data may result in Fed rate hikes, which may trigger the cryptocurrency industry to continue falling. As reported by CNBC, 88 per cent of investors are worried that the Fed may hike interest, which will have a far-reaching effect on the markets. Should the interest rates go up, I expect the cryptocurrency industry to also be affected, which is likely to see another cryptocurrency crash and a prolonged downward move of the industry. This fear has affected virtually all cryptocurrencies, especially altcoins such as Filecoin.
Filecoin Price Prediction
Despite today’s 2 per cent gain in the market and the past five days of a sideways market, my long-term Filecoin price prediction is still to the downside. I expect the prices to continue dropping.
There is a high likelihood that we may see Filecoin price trading below the $6 price level in the next few trading sessions. In worst-case scenarios, I expect prices to hit the $5.12 support level and trade below it. My analysis will, however, be invalidated should prices move past the $6.8 resistance level.