Today Filecoin (FIL) has made an impressive performance with over 40% gains over the last seven days. The coin has seen strong rallies since January, with about a 39% 30-day price increase.
However, like other coins, Filecoin encountered some difficulties in the past few days. On February 13, FIL closed the day with a 4.0% loss. The decline spilled over to February 14 as the crypto closed the day with a 0.9% price drop at $5.09.
However, as the global crypto market started rebounding, the Filecoin price improved with a 4.5% increase on February 15. At press time, the token surprised traders with a massive 23.08% price gain and now trades at $6.77.
With its seven-day gain, Filecoin emerges as one of the most consistent performers in the global crypto market; FIL is up 12.9% over the same timeframe. Also, with an 18.9% price increase, FIL outperforms similar cryptocurrencies, which are up by 9.9% at press time.
Filecoin Price History And Factors Fuelling Price Rally
Like every other crypto asset, Filecoin has seen its fair share of ups and downs. Following historical data, Filecoin traded at $61.04 as of October 15, 2020. However, FIL price started correcting from October 16, 2020, and by October 22, 2020, the coin had dropped to $23.73.
FIL price kept consolidating between $29 and $30 almost throughout December 2020 till it eventually hit an all-time high of $236.84 on April 1, 2021, during the crypto bull run.
But as the 2022 bears hit the crypto market, FIL price declined to an all-time low of $2.64 on December 16, 2022, before gradually rising to the current price of $6.74. Filecoin is 97.28% down from its all-time high and 144.27% up from its all-time low.
Filecoin rally this year could be due to the improvement in investor sentiment and the increase in the global crypto market cap about seven weeks back. Also, there have been a few developments in the Filecoin network. One of them is the launch of Filecoin Virtual Machine (FVM), most likely on March 1.
The Filecoin community has been anticipating the launch of the FVM, a runtime environment for smart contracts on the Filecoin network. This could be one of the factors pushing FIL prices upwards. As the community awaits the launch, some firms like Eclipse have already started building with it.
Meanwhile, another factor contributing to the FIL’s price rally could be the recent increase in investor sentiment. According to CoinGecko, the community is bullish about Filecoin, with over 89% of users feeling positive about the coin.
Even the fear and greed index is currently at 61, suggesting increased investor sentiment in the crypto market.
Filecoin Price Outlook
Filecoin is trading at $6.77, an increase of 23% in 24 hours. The asset is trading above its 50-day Simple Moving Average (SMA) and 200-day SMA, which is a bullish signal.
FIL moved into an uptrend on February 14 and has continued today, forming a large green candle on the price charts. The support levels are $4.60, $4.99, and $5.19; the resistance levels are $5.78, $6.18, and $6.37.
The Relative Strength Index (RSI) is reading 67.84, close to the overbought zone of 70. Also, the indicator is pointing upwards, which implies that it will likely increase in value. FIL’s Moving Average Convergence/Divergence (MACD) has crossed over the signal line reflecting the bullish pressure in the market.
Filecoin is currently trading above its resistance levels, turning them to support. The token will likely retrace to retest the $6.37 level. However, $7 is a possibility it might achieve in the coming days.
-Featured image from Pixabay and chart from TradingView.com