Filecoin and FIL token: Let us dig deeper
Filecoin is a blockchain project that is disrupting the file storage industry. The platform’s goal is to simplify how storage infrastructure works. Instead of relying on vast expensive servers that are located globally, it has proposed a system where people can provide their free storage and then earn a certain amount doing that.
People can provide their computer or even smartphone storage. Therefore, Filecoin does not seek to compete with other file storage platforms like OneDrive and Google Drive. In a perfect world, companies like Google and Microsoft would embrace its technology and save money on data centers.
FIL is the native token for the Filecoin system. It is the currency that is used for both governance and paying storage providers for the network. According to CoinGecko, it has a total market cap of more than $3.5 billion, making it the 40th biggest cryptocurrency in the world. It has a maximum supply of over 1.9 billion and 193 million already in circulation.
Filecoin (FIL) price history and technical analysis
Filecoin raised a whopping $205 million in an Initial Coin Offering (ICO) in 2017 and launched its mainnet in 2020. That was a good outcome for its original investors.
On the four-hour chart, the FIL token jumped to an all-time high of $28.08 in 2021. At the time, it was among the top 20 of the biggest coins in the world. Since then, the Filecoin price has tumbled to about $18 while its ranking has dropped to 40.
The coin has dropped below the 25-day and 50-day moving averages. It has also declined below the descending trendline shown in purple while its MACD has dropped below the neutral level.
Therefore, for now, there are no bullish signs that have emerged. As such, there is a possibility that it will continue falling in the near term. More downside risks will continue if the coin moves below the important support at $17.7, which was the lowest level this year.
Filecoin (FIL) price prediction for a year
Filecoin and other cryptocurrencies face a major risk as the Federal Reserve becomes more hawkish. The bank has already hiked interest rates for the first time since the pandemic started. It now expects to deliver at least six hikes more this year. Therefore, there is a possibility that Filecoin will struggle in a high interest rate environment.
On the daily chart below, there are no bullish signs at the moment. Therefore, there is a possibility that the coin will continue falling in 2022. The next key support level to watch will be at $16.50, which is about 10% below the current level.
According to Long Forecast, the coin will continue falling this year as demand wanes. They expect that the price will end the year at $10.77. Another estimate by Digital Coin Price estimates that it will average about $23.68 in 2022. This price is about 23% above the current level.
Filecoin (FIL) price prediction for 2025
Filecoin is attempting to disrupt a large industry that has existed well in a centralized nature. Also, it is facing strong competition from the likes of Arweave and Storj. Therefore, it will need to grow rapidly and create a moat. Further, Filecoin needs to educate more users on how to provide storage. Another challenge is the volatility of the coin, which will disincentivize people from offering the service.
Digital Coin price expects that the coin will average about $36.89 in 2025 while Long Forecast believes that it will remain between $11 and $20 in 2025. The weekly chart shows that the coin will likely keep falling for a while and then resume the bullish trend.
Filecoin (FIL) in Questions & Answers
Is Filecoin coin real?
Yes. Filecoin is a real coin. It is a widely-owned cryptocurrency that is valued at over $3 billion.
Will Filecoin reach $100?
Filecoin is trading at $18. This means that it needs to rise by over 400% to get to $100. Since it was above $100 a few months ago, there is a likelihood that it will retest that level again.
Should I buy Filecoin coin?
In the near term, there is a likelihood that Filecoin price will remain under pressure. Therefore, buying it now could lead to substantial losses. Before you buy, ensure that you have seen a well-defined bullish trend.
How much will be Filecoin be in five years?
Filecoin is attempting to change a major industry. If it succeeds, it will become a leading player in the sector. There is a likelihood that the FIL price will be much higher than where it is today. For example, we can estimate that it will retest its all-time high at $235 in the next five years.
Where do I buy Filecoin?
Filecoin is a popular cryptocurrency to buy. As such, it is widely offered by leading exchanges like Binance and OKX. You can also buy it in one of the leading decentralized exchanges like Uniswap and PancakeSwap.
This article represents the views of the author. Cryptocurrencies are highly speculative assets, and the author will not be held liable for any losses.
