• Filecoin [FIL] has become the cheapest decentralized storage network, 99% cheaper than Amazon at press time.
• CryptoQuant’s data pointed to a major bearish signal that could halt FIL’s bull rally.
• Market indicators showed mixed signals with some being bullish and some being bearish.
Filecoin [FIL], the decentralized storage network, has been making headlines lately due to its impressive price gains. According to CoinMarketCap, FIL’s price increased by 26% in the last seven days, and was priced at $4.72 with a market capitalization of over $1.69 billion at press time. However, things might change soon as CryptoQuant’s data pointed to a major bearish signal that had the potential to halt FIL’s bull rally. Is a price plummet inevitable?
To get a better understanding of the current market sentiment, it is important to analyze the different market indicators and on-chain metrics. Filecoin’s market indicators told an ambiguous story, as some of them were bearish while others suggested the possibility of a continued uptrend in the coming days. For instance, the Exponential Moving Average (EMA) Ribbon displayed a bullish crossover as the 20-day EMA flipped the 55-day EMA. The MACD’s reading complemented that of the EMA Ribbon, revealing a bullish advantage in the market. Another bullish signal was FIL’s Chaikin Money Flow, which registered an uptick. However, the Money Flow Index (MFI) was in the overbought zone, which might be troublesome.
On-chain metrics for FIL also showed mixed signals, with some being bullish and some being bearish. According to Messari, Filecoin [FIL] had become the cheapest decentralized storage network, 99% cheaper than Amazon at press time. This news was met with a positive reaction from the market, driving up the prices of FIL. However, some on-chain metrics such as the number of active addresses, transaction amount, and transaction volume had all gone down over the last week. This might be an indication that the bullish trend could be short-lived.
It is important to note that caution is advised when trading in the crypto market. Although FIL’s market indicators and on-chain metrics suggest that the digital asset might continue to rise in the coming days, there is no guarantee that this will be the case. As such, investors should pay close attention to the market and make informed decisions before investing in FIL.