Filecoin price has been in a consolidation phase in the past few days. FIL was trading at $4.40, where it has been in the past two days. This price is about 85% from the lowest level in 2022. Its market cap has moved to about $1.6 billion, making it the 34th biggest cryptocurrency in the world. So, what next for FIL after deploying in space?
Latest Filecoin news
Filecoin is the biggest blockchain network focused on file storage. The concept behind its technology is relatively simple. Instead of deploying centralized storage devices, Filecoin focuses on decentralization, where anyone can provide storage to the network. This storage can be the spare bandwidth in your smartphone or computer.
The most recent Filecoin news is a new partnership between Filecoin Foundation and Lockheed Martin, the biggest defence contractor in the world. The two companies announced that they will deploy the Interplanetary File System (IPFS) in space. This deployment will take place aboad the company’s LM 400 Technology Demonstrator spacecraft. In a statement, Filecoin Foundation said that the deployment will help to boost the speeds of data transfer. The statement added that:
“Today’s centralized internet model doesn’t work in space. Let’s say you’re on the moon and you’re retrieving data from Earth; each time you retrieve that data, there will be a multi-second delay.”
Concerns about Filecoin
Still, there are concerns about Filecoin and other decentralized file storage systems like Siacoin and Storj. While their storage capacity is rising, there is a concern about whether there is demand from users. Filecoin has a total storage capacity of 18.8 EiB while the total data stored in the network is about 495 PiB. This means that only 0.48 EiB is stored in the network.
A key factor is that centralized storage networks work quite well and are significantly affordable. They include popular platforms like Amazon Cloud Drive, Google Drive, and OneDrive among others. Another concern is that Filecoin storage providers have seen the value of their rewards drop as the FIL price has crashed. Meanwhile, demand for NFTs has dropped recently. This is notable since NFT storage is one of the top use cases for Filecoin.
Filecoin price prediction
The daily chart shows that the FIL price has been in a bullish trend in the past few days. It soared to a high of $4.95, the highest level since November 8. Along the way, it has moved above the 25-day and 50-day EMA while the MACD has moved above the neutral point. The pair has also formed what looks like a bullish flag pattern.
Therefore, there is a likelihood that the Filecoin price will have a bullish breakout as buyers target the key resistance at $6. A drop below the support at $4 will invalidate the bullish view.