Filecoin (FIL) is one of the cryptocurrencies that has performed the best in recent days, thanks to gains of more than 40% accumulated only during March 16 and 17.
At the time of this writing, FIL is trading at $ 78.10, and accumulates a 4.78% loss in the last 24 hours.
The price drop during the current day is the product of a corrective period after a previous large rise. The current behavior tells us that the price is only resting before continuing to rise.
But what is it that has been dragging this cryptocurrency higher? Where is it going? Find out below.
Two key factors are driving the price of Filecoin (FIL)
The first of the fundamental factors that is helping in the rally of this cryptocurrency is the growth of its storage capacity and volume of transactions.
Billionaire Bitcoin investor Cameron Winklevoss showed optimism towards Fileicon following the recent rally.
Through his Twitter account, the billionaire ensures that the amount of storage power, active miners, and developers of the Filecoin network are growing, so he is not surprised to see the price skyrocket.
A few hours after Winklevoss showed positivism towards this crypto, the CEO of Grayscale announced the incorporation of Filecoin to the investment products of the Grayscale Trust, which was undoubtedly an important second source of gasoline to the rally that the FIL price experienced.
Solidly bullish medium-term trend
Pricing is never far behind when positivity around a project rises, and in this case it pushed FIL to an annual high of $ 96.66.
From the weekly chart we can see a clear medium-term upward trend, made up of increasingly higher lows and highs.
After peaking at almost $ 100, FIL started to pull back slightly, and even though a healthy correction has yet to occur, we could well see a bullish continuation from where the price is currently.
Even in case of seeing greater falls, the previous force tells us that the best idea will always be to buy.
The strength of the bears is little
With the correction in process, we can quickly identify that the behavior tells us that the price is only resting, since the bearish force is not at all relevant when compared to the bullish impulse force.
Filecoin made support at around $ 80. As long as it continues above this level, we are likely to see further momentum to the upside in the next few hours / days.
In the event that we see a breakout of that level at $ 80, we may see a further drop to the surrounding area at $ 54. Even if this is the case, the demand from those who take advantage of discount prices could quickly exert pressure and resume the previous trend.
All our publications are informative in nature, so in no case should they be followed as investment advice.