The entire crypto market has pumped heavily over the past week. Top coins like Bitcoin, Ethereum, and BNB have seen 10% to 20% growth and in fact, the overall crypto market cap has also risen to new highs.
However, in the weekly time frame, Filecoin (FIL) didn’t really perform that well, it dropped more than 11%.
FIL price chart | Source: Tradingview
Therefore, the question that remains unanswered now is whether the trend of FIL will reverse in the short term or not?
Change the tune
Well, while the short-term gains are not overwhelming, broader sentiment has slowly started to change, indicating that the current downtrend may not be able to last for long.
At the time of writing, it is noted that the funding rate curves of all major exchanges, including Binance, ByBt and OKEx have seen a noticeable change.
Their dominance in the positive zone implies that the majority of traders are currently bullish. If the uptrend continues on the funding rate chart, chances are that the FIL price will react positively.
Filecoin’s Open Interest (OI) is also back on track, reflecting a cumulative value of over $350 million at press time. Overall, the rising price numbers indicate healthy speculative interest among market participants regarding the FIL.
Looking beyond the short term
Well, one could argue that market sentiment changes in minutes and is usually not decisive in the long run. To assess the big picture, other factors need to be considered.
The state of the fundamentals, to a fair degree, provides a kind of assurance to investors about the coin’s fate in the long term.
Let’s take a look at development activity. On Github, Filecoin currently has over 162 repositories. Simply put, a repository contains all the files of a particular project along with their revision history.
From the snapshot attached below, it can be noted that the “storetheindex” archive was updated – 38 minutes ago while ‘Lotus’ and ‘venus’ were last updated a few years ago. hour.
This is essentially a sign that the developers and other members of the community are actively contributing to the project in terms of development.
Furthermore, Filecoin recently partnered with Flow and has now become its official storage associate. The integration of the aforementioned technologies will accelerate the end-to-end ownership of NFTs and will further aid the influx of new participants into the Filecoin arena.
Additionally, the assets under management (AUM) on Grayscale’s FIL investment vehicle are now worth more than $5.9 million, up from $5.5 million in August. This implies that the interest of organizations is also gradually taking shape.
Therefore, with positive sentiment and solid fundamentals, the downtrend on the price chart will not last. Those who missed the FIL train can enter anywhere around $60 to enjoy long-term profits.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to AMBCrypto
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