The Filecoin price bounced back on Friday as demand for the decentralized storage network bounced back. The FIL token is trading at $57.35, which is about 20% above the lowest level this week. Still, it is about 51% below its highest level in October. Its total market cap has dropped to about $7.4 billion.
Filecoin is a relatively popular blockchain platform that enables companies and other developers to store their files in a decentralized manner. In the past few months, the number of developers using the platform has increased substantially. They include developers like Flow and Dapper Labs.
However, the Filecoin price has struggled recently. There is no particular reason why this drop has happened. In my view, it is likely because most investors have recently shifted their focus to other blockchain projects like Solana, Avalanche, and Algorand. Also, there has been a focus on metaverse coins like Decentraland and Sandbox.
Filecoin price prediction
Filecoin was once one of the most popular cryptocurrencies in the world. Recently, however, this popularity has not translated to a strong performance of the FIL price. Indeed, while Bitcoin and Ethereum have jumped to an all-time high, Filecoin is still about 80% below its highest level this year.
On the four-hour chart, the coin has found a strong support at about $48. It has then moved slightly above the 25-day and 50-day moving averages while the money flow index (MFI) is pointing upwards.
Therefore, for now, this bullish trend will continue as bulls target the key resistance level at $70, which is about 20% above the current level. This price was along the highest level on November 9. A drop below $50 will invalidate the bullish view.