Technical and on-chain analysis of Filecoin (FIL) indicates the beginning of a consolidation phase. The decline in daily active users since early February and the RSI above the overbought threshold suggest that the token is preparing for a period of stability, setting the stage for potential future price movement.
Filecoin (FIL): Number of daily active users decline
The number of daily active users of Filecoin is declining. However, since the beginning of February, it has seen a gradual decline in the number of daily active users, indicating a steady change that has profound implications for the entire ecosystem.
As a rule, a drop in the number of users affects the competitiveness of the project and its attractiveness to new investors. Moreover, If the problem is not resolved soon, it will inevitably will affect the price of FIL.
The RSI index remains overbought
Filecoin weekly RSI is 73. After soaring to 83 in early March, the index has declined markedly, demonstrating a classic overbought scenario where demand has pushed the price to potentially unsustainable levels. However, the RSI drop to 73 suggests that the buying frenzy is gradually subsiding, and FIL is entering consolidation, balancing prices after the recent surge.
FIL price forecast
The 4-hour chart of FIL shows the convergence of the exponential moving averages (EMA) and the current price line. On the other hand, this usually signals trend uncertainty.
The death cross, which forms when the 20 EMA falls below the 200 EMA, entering a consolidation could trigger a fall to $7.6. On the other hand, an uptrend, which could be indicated by a golden cross of the short-term EMA above the long-term EMA, will result in FIL rising to $11.
About Filecoin (FIL)
Filecoin is a decentralized system for data exchange and cloud storage. Developed by Protocol Labs, a research and development company that specializes in Web 3.0 solutions. Filecoin is a blockchain based on IPFS (Interplanetary File System). FIL is the network’s native cryptocurrency, serving as a payment instrument connecting buyers and sellers in the IPFS ecosystem.
In 2017, Filecoin raised $206,000,000 through its ICO, which attracted the attention of thematic media. Today, the project is making itself known again – its value has grown by 120% in a week, and its capitalization has allowed it to enter the top ten. The system is actively developing and providing users with new opportunities, for example, from March 31, users can create NFT galleries thanks to the partnership between FIL and the Truffle Suite platform.
