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Filecoin’s FIL is up 69% in the last week
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FIL. But the reason for recent FOMO is likely to be strong fundamentals
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FIL may retrace, but price will remain high
At press time, Filecoin FIL/USD was trading at $9.41. Data from Coinmarketcap shows that the overall gain for the week stood at 69.35%. Certainly, the percentage increase will be higher on weaker highs above $11. As with most bull runs, there is bound to be improvement. We believe Filecoin may be right, but investors should be keen on the token.
Filecoin’s gains don’t come as a surprise. The token saw an increase in social media mentions and was the focus of investor buyouts at $6. Venture capital firm Holon Global previously said that it has launched three crypto funds. One fund was for Filecoin’s FIL. This could increase investor interest amid better crypto sentiment.
Another potential driver of Filecoin token gains was a network update. The update revealed that over 1,475 projects were entering Filecoin. More than 405 organizations were also building on the network, with approximately 17.9 EiB of total storage power. The developments could have drawn FOMO to FIL, leading to the latest gains.
Filecoin retreats after weekly rally
Source – TradingView
After the latest gains, Filecoin is retreating. The RSI is pointing to a reading of 83, which indicates overbought positions as the price rises. A series of profit-taking and die-off FOMO could lead to a quick price correction. The next level to watch for potential buy trades is $8.0.
closing thoughts
Strong fundamentals have fueled Filecoin’s surge over the past week. A potential retracement is likely as investors take profits. If the crypto sentiment persists, look for a buy retracement at $8.0.