The Filecoin price rocketed higher on Monday as traders waited for the upcoming demo day. The FIL token rose to a high of $62, which was the highest level since Thursday. It has risen by more than 25% from its lowest level on Friday.
Filecoin ecosystem growing
Filecoin (FIL/USD) is a fast-growing blockchain project that is changing the storage industry. The developers have built a platform that allows people and companies to store files in a decentralized manner. They store these documents in computers owned by members of the ecosystem.
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Data compiled by the developers shows that there are more than 260k CIDS, 765 unique providers, and more than 28.42 PIB stored in its ecosystem.
In the past few months, the use case of Filecoin has risen substantially. For example, recently, Dapper Labs integrated with Filecoin to provide gaming metaverse on Flow blockchain.
Similarly, Near Protocol has adopted Filecoin as its storage provider. It also has interoperability features with popular blockchain projects like Hedera Hashgraph and Chainlink.
Filecoin is also a leading player in the Non-Fungible Tokens (NFT) industry. In July, OpenSea announced that it had launched a feature to freeze NFTs using Filecoin’s network. All this user adoption has helped to push Filecoin’s total market capitalization to more than $6.8 billion.
The Filecoin price is rising as investors wait for the Launchpad Demo Day scheduled for Tuesday this week. Some of the platforms that will demonstrate during this demo day will be Blockbets, Inflow Music, Huddin, and the Mona Gallery.
Filecoin price prediction
The daily chart shows that the FIL price has been under intense pressure lately. The token has declined by almost 50% from its highest level in September. At the same time, it has formed what looks like a head and shoulders pattern. Indeed, the price is currently slightly below the neckline of this pattern.
It has also moved below the 25-day and 50-day exponential moving averages (EMA) while the MACD has been in a bearish trend.
Therefore, there is a likelihood that the Filecoin price will resume the downward trend as bears target the key support level at $40. On the flip side, a move above the neckline at $66 will invalidate the bearish view.
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