The Filecoin price rallied strongly on Thursday. FIL rose to a daily high of $94.56, up about 32% from this week’s low. The rally pushed Filecoin’s total market cap to more than $9.48 billion.
Filecoin and NFTs
Filecoin is a decentralized storage platform founded in 2017 by Filecoin Labs. The platform seeks to decentralize the file storage industry by turning it into an algorithmic market. This market runs on a blockchain with a native protocol token that miners earn by providing storage to customers.
FIL is the native token for the Filecoin network. The token is obtained through what is known as proof-of-storage or proof-of-replication technology. In addition, the network is based on Decentralized Storage Network (DSN) technology, proof-of-work technology, and verifiable markets technology.
Filecoin’s goal is not to replace other centralized storage platforms like OneDrive and Google Drive. Instead, it wants to help developers store their data on a decentralized and cost-effective platform. To that end, the Filecoin Labs Foundation has awarded $1.5 million in grants to developers. They have developed about 45 projects.
The Filecoin price is rising because of the investment in NFTs. In April, NFT.Storage was unveiled. It is a platform that securely stores NFTs and their metadata. It works through content addressing, providing provable storage and resilient retrieval.
Analysts expect that as the NFT industry grows, so will Filecoi.
However, despite the growth, FIL’s share price was not spared from the crypto industry’s crash. On Tuesday, the price of the coin dropped by more than 40%.
Filecoin Price Forecast
The daily chart shows that FIL price started a spectacular rally on July 21 when it dropped to $40.52. The price jumped almost 200% to $120.
Today, the Filecoin price is trading at $86. This is well above this week’s low of nearly $70. It also remains slightly above the 25-day and 50-day moving averages, but slightly below the 61.8% Fibonacci retracement level.
Therefore, the outlook for the Coin is neutral at current levels. This rally could be a so-called “dead cat bounce”. A full recovery will be confirmed when the coin breaks above the important resistance at $100.