Filecoin (FIL) made a positive start in July. The cryptocurrency has experienced a significant price increase in the past 24 hours. According to CoinGecko DataFIL has increased in value by 16.47% in the past day, pushing the price to $4.73.
FIL is the native token of the decentralized Filecoin network, an open-source cloud storage protocol designed for easy data storage and retrieval.
Filecoin in June – Price action
The FIL price started the month trading at $4,693. The value of the token plummeted after hitting the $5 price level, losing up to 34% by June 10.
However, the FIL price has been on a steady rise since this sharp drop, rising more than 52% in recent weeks. It is worth noting that Filecoin moved sideways at the end of June, with the price of the token hovering around $4.
That said, FIL appears to have resumed its bullish course, up more than 20% since early July. Most of this price increase is due to today’s spike, which has prompted Filecoin to regain its early June price level.
At the time of writing, Filecoin (FIL) is changing hands at $4.73, according to data from CoinGecko. The cryptocurrency has a 24-hour trading volume of over $530 million, representing a 434% increase in the past day.
The recent price increase of Filecoin (FIL) has also had a positive impact on its market cap, with the market cap exceeding $2 billion USD.
What’s next for FIL?
It remains to be seen how long this current price rally will last, especially as the daily Relative Strength Index (RSI) approaches the overbought zone. The RSI is a momentum indicator that tracks a token’s oversold and overbought levels. When the RSI enters the oversold area, it indicates that the price of the token is losing momentum and a reversal could be on the horizon.
Moreover, Filecoin is at the key resistance level at $4.8 on the daily time frame. If FIL crosses this threshold, the token is expected to continue its bullish run leading to further price increases. On the other hand, if FIL fails to break the $4.8 resistance level, we could see the coin fall towards the $2,941 support level.
Meanwhile, the 200 EMA (Exponential Moving Average) also acts as a dynamic resistance to the Filecoin price, creating a barrier to upward movement, as shown in the chart below. Therefore, the bullish run cannot continue until the price of FIL moves above the 200 EMA.
FILUSD at the $4.8 resistance zone | Source: FILUSD chart from TradingView
Featured image from iStock, chart from TradingView