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Filecoin’s FIL is up 69% in the last week
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Strong fundamentals are likely the cause of the recent FOMO on FIL
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FIL could retrace, but the price will remain elevated
Filecoin FIL/USD was trading at $9.41 as of press time. Data by Coinmarketcap shows that the total gains in the week stand at 69.35%. The percentage surge would, of course, be greater, at the weakly high of above $11. As with most bull runs, corrections are bound to happen. We believe Filecoin could correct, but investors should be keen on the token.
Filecoin gains do not come as a surprise. The token witnessed increased social media mentions and was the center of investor buys at $6. Holon Global, a venture capital firm, previously said it had launched three crypto funds. One fund was for Filecoin’s FIL. That may have increased investor interest amid improved crypto sentiment.
Another potential driver of Filecoin token gains was a network update. The update showed that over 1,475 projects were entering Filecoin. More than 405 organizations were also building on the network, with about 17.9 EiB total storage power. The developments could have attracted FOMO to FIL, leading to the latest gains.
Filecoin retreats after the weekly bullish momentum
Source – TradingView
Filecoin is retracing after the latest gains. The RSI pointed to a reading of 83, indicating overbought conditions as the price surged. A series of profit-taking and dying FOMO could lead to an accelerated price correction. The next level to watch for potential buy trades is $8.0.
Concluding thoughts
Strong fundamentals have been driving Filecoin’s surge for the past week. A potential retracement is likely as investors take profits. Focus on buying on a retracement at $8.0 if the crypto sentiment remains.