John Isige
FIL, the token powering Filecoin, a crypto ecosystem built around sharing storage and data across multiple chains is stirring up investor interest. If we don’t dwell on the 8.2% pullback over the 24 hours, Filecoin price has sustained a bullish impetus since early February. Like many other cryptocurrencies, the uptrend was a continuation of a rebound that started at the New Year.
Experts and analysts believe this bullish display has something to do with a major network upgrade and China’s love for Filecoin. Similarly, investors seem to be digressing into Chinese tokens like FIL and Conflux.
For instance, Filecoin is up a whopping 50% in just seven days to trade at $8.00 even though the crypto market is generally dealing with significant turbulence this week. At the same time, Conflux has in the last 30 days treated CFX holders to a 956% rally. CFX price uptrend continues undeterred, considering the 5% uptick in the last 24 hours.
How Is The Chinese Narrative Driving Filecoin Price Rally?
The recent announcement from Hong Kong, one of China’s sprawling economic hubs is driving interest in tokens backing shared storage protocols such as Filecoin. On Monday, Hong Kong’s Securities and Futures Commission (SFC) published its proposed regulatory framework to oversee the operations of crypto trading platforms.
SFC requested crypto trading companies to start reviewing and revising “systems and controls to prepare for the new regime.” Trading platforms with no plans of applying for the license were asked to prepare “for an orderly closure of their business in Hong Kong.”
However, China’s love for Filecoin is not new, with investors from the region deliberately choosing FIL over other possible options. Filecoin also makes the point of presenting itself as sellable in the Asian nation by fronting an uneven local investment landscape as well as a very grounded stance on capital controls.
For that reason, Chinese investors prefer the token for its seamless integration into the financial system and to facilitate international activities. Moreover, Filecoin’s utility as a shared storage platform couple, with the storage minting tag fits within the needs of the Chinese people.
Filecoin Network Upgrade Release Date Confirmed – Will Filecoin Price Explode To $20?
The Filecoin community is counting the days to the much-anticipated network upgrade—Filecoin v18 Hygge. According to the latest communication from the team, “the completion of the calibrationnet upgrade” laid the foundation for the mainnet’s rollout on 14 March 2023.
Filecoin Virtual Machine (FVM) is the biggest highlight of the new version of the protocol because it will for the first time, be equipped to be programable. This means developers within the ecosystem can launch smart contracts directly to the Filecoin blockchain.
According to the team, “this launch will unleash the enormous potential of an open data economy while enabling existing Ethereum tooling to be compatible with Filecoin.” The new FVM will cater to developers of decentralized applications, markets, and organizations and have what it takes to compete with centralized cloud service providers.
In other news, projects continue to launch on the FVM like Medusa, which according to Filecoin, went live on the platform on Wednesday. Medusa is a project that facilitates simple, secure, and decentralized solutions for access control of private data.
In other words, it is an alternative method of managing access to private data using blockchain technology. Medusa will also be launching on other leading chains in the industry, including Ethereum, Cosmos, and Polygon.
Filecoin Price Rally On Hold, But Not Over
FIL came very close to tagging the psychological resistance at $10.00 after breaking above the previous stubborn seller congestion at $6.00, but its uptrend lost steam brushing shoulders with $9.48. A break above the multi-month trendline resistance around $5.30 ignited the rally that weakened the hurdle at the 200-day Exponential Moving Average (EMA) (line in purple) at $0.5262.
The sluggish price action in the crypto market this week has generally slowed down investors’ risk appetite and maybe contribute to FIL’s pullback. Meanwhile, support at $8.00 is intact, for now, although this could change in the coming sessions, especially if overhead pressure overwhelms demand for FIL.
Investors keeping their long positions in Filecoin price are considering a buy signal presented by the Moving Average Convergence Divergence (MACD) indicator on the daily time frame chart.
The call to investors to keep filling their wallets came into the picture as the MACD line in blue crossed above the signal line in red. In addition to this, the 50-day EMA (line red) flipped above the signal line, which to a great extent, confirmed the bullish grip on Filecoin price.
Investors should be on the lookout for the next golden cross – to be formed as the 50-day EMA flips above the longer-term 200-day EMA. If declines increase below $8.00 buyers may want to strategize to buy FIL above the next support, as reinforced by the 200-day EMA (line in purple) marginally above $6.00.
A breakout above the critical seller congestion shown in the upper purple band is expected after the upcoming protocol upgrade on 14 March. Hence, investors should prepare accordingly for a rally that may quickly propel Filecoin price to highs above $20.00.
Filecoin Alternatives To Buy Today
Before you buy Filecoin, you may want to consider some of the best crypto presales to buy this year. Top on the list of the best altcoins to buy are Metropoly (METRO) and RoborEra (TARO). These up-and-coming tokens offer a better risk-reward ratio.
Metropoly (METRO) is pushing innovation to the next level using blockchain technology and Web3 solutions. By bringing up an NFT marketplace, Metropoly believes it can change how investment is conducted in the real estate industry.
For instance, the process of investing in real estate is down to less than 20 seconds from the current 60 days globally. Investors are scooping up METRO tokens in a presale that has raised $539k so far.
With the same vigor, investors are buying RobotEra, a new crypto ecosystem built around a metaverse game. In addition to the play-to-earn game, community members are looking forward to many other activities to generate revenue, including game development, digital collectibles, and the minting of NFTs. The metaverse would promote innovation and service delivery with the aim of creating a vibrant economy. So far, the sale of TARO has raised $933k.
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This article was written for Business 2 Community by John Isige.
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