Filecoin prices continue to plummet, with today’s trading session marking the third consecutive day the cryptocurrency is dropping in the markets. The current drop is a continuation of a recent downward trend that started in April and has seen the prices drop by more than 30 per cent.
The Filecoin price drop comes amidst concern by businesses and enterprises whose data are becoming increasingly vulnerable to attacks. This has resulted in these institutions being open to decentralised methods of data storage, where platforms such as Filecoin specialise.
In a report released by Forbes, the conventional framework of the database management system used to store, access, share and distribute data is becoming redundant, and people are willing to look elsewhere. There is also a shift towards decentralised database management systems that are believed to be capable of disrupting today’s legacy systems of engaging with data.
This has resulted in platforms such as Filecoin, Storj and Sia gaining traction. The report argues decentralised storage can help address problems with modern databases, and Filecoin may be at the centre of the revolution.
This week has also seen increased positive coverage of the Filecoin platform. However, the positive fundamentals have not been translated to market trends, and the cryptocurrency has continued to struggle in the markets.
Filecoin Price Prediction
Filecoin prices continue to struggle in the market, with today’s trading session continuing the long-term bearish trend. Looking at the chart below, today’s session will mark a third consecutive day that the prices are losing in the markets. The chart also shows that it is highly likely that the prices are in a long-term downward move.
Using the chart, I expect Filecoin prices to continue going downwards. It is possible that, in the next few days, the prices of Filecoin will be trading at around the $16 support level. This will be a drop of over 10 per cent in prices from the current $19.5. It is also likely that prices will break the support level and approach the $15 psychological level in the coming days.