Filecoin FIL/USD extended its correction from the record highs above $230, registered on 21st April, and the current price of this cryptocurrency stands around $52. If the price of Bitcoin falls below the $30000 support level, it would be a firm “sell” signal, and this would add further pressure to the whole cryptocurrency market.
Fundamental analysis: Filecoin turns cloud storage into a commodity
Filecoin is a powerful and dynamic distributed cloud storage network for your data that allows anyone to participate as a storage provider. Many diverse storage providers and developers participate in this network which makes Filecoin a robust and reliable service.
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Users can sell data on the network and provide flexible options at the best prices, while Filecoin tokens can be used as payment options and transferred between users. It is important to say that all new entrants can easily compete with entrenched players and it’s all done on a transparent, global marketplace.
Filecoin turns cloud storage into a commodity which simplifies things a lot for archivists, scientists, and other cloud and dataset experts
All stored data remains available and unchanged over time while Filecoin blockchain verifies proofs and automatically takes corrective action when needed. The important public data, historical archives, Wikipedia’s database, and more can be stored on the Filecoin network without the fear that it could be lost.
Filecoin is also a great option for supply chains because it can store large amounts of data for a long period of time at minimum costs. Filecoin offers the ability to customize your specific needs with a growing ecosystem of tools and libraries.
Filecoin is a very promising project, and the price of this cryptocurrency could advance again at levels that we saw in April 2021. This will certainly not happen in the upcoming weeks or even months, and traders should have in mind that if the price of Bitcoin falls below the $30000 support, that will negatively influence Filecoin.
Technical analysis: $40 represents a strong support level
The critical support levels are $40 and $30; $80 and $100 represent the important resistance levels. If the price falls below $40 support, it would be a firm “sell” signal, and we have the open way to $30 or even to $20.
On the other side, if the price jumps above $80 resistance, it would be a signal to trade Filecoin (FIL), and the next price target could be around $100.
Summary
Filecoin extended its correction from the record highs above $230, registered on 21st April, and the price of this cryptocurrency can weaken even more in the upcoming days. It is also important to mention that the price of Filecoin is in correlation with the price of Bitcoin, and investors in this cryptocurrency should also have Bitcoin on their “watch list.”
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