The FIL token has seen an impressive surge in popularity over the past few months as its utility has increased in the decentralized finance space. The price of Filecoin (FIL) has risen by 27.4% in the past week and is currently standing at $5.45 at press time. As more investors enter the DeFi space, the potential of FIL token price prediction has become an important consideration.
Filecoin (FIL) Network Overview
The decentralized storage network Filecoin utilizes the Interplanetary File Storage (IPFS) protocol to convert unused storage globally into an efficient storage market. Customers pay for low-cost storage with Filecoin (FIL), and nodes that provide storage to the network earn Filecoin as payment for their service.
This contrasts with centralized cloud storage solutions like Amazon Web Services, Google Cloud, or Dropbox, where data is stored on servers owned by private corporations. The objective of Filecoin is to ensure permanent and distributed file storage across the web.
Filecoin’s blockchain not only stores large files but also serves as a reliable storage for other blockchains. The top 10 cryptocurrencies worldwide have blockchains due to the trust they have earned from users.
As Filecoin continues to grow and onboard more blockchains onto its platform, it has the potential to become the top blockchain. This transition could also lead to a significant increase in the price of the FIL token.
Why is Filecoin(FIL) Surging?
The initial coin offering (ICO) for Filecoin began with a price of $1 per token, and for every $40 million raised, the price increased by $1, with a maximum price of $6 per token. The ICO took place on August 10th, 2017, and the Filecoin team successfully raised over $200 million in funding.
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Filecoin also plans to release the Filecoin Virtual Machine’s EVM runtime (FEVM) in February 2023, which they claim will be a groundbreaking update to the Filecoin network. The launch of Filecoin’s FEVM is expected to boost the growth of FIL coin in 2023, and if there is a small bull run for Filecoin’s price in 2023, it may follow the 4-year coin cycle bull forecast by 2025. The current low price presents a good opportunity to buy.
FIL Technical Analysis ( What is FIL’s Potential?)
According to the analysis above, the price of FIL has been steadily increasing over a daily timeframe. On January 25th, the cost of Filecoin was trading at around $5.53, while the 24-hour trading volume was recorded at $318,883,257
The coin has been trading in an uptrend since mid-November 2022 after experiencing bearish movements that landed the price at $2.7. FIL is trading close to the resistance level of $6.50, which could be a major hurdle for the bulls. The 9 EMA cross over the 50 EMA is also a clear indication of the bullish move. FIL could reach the resistance level of $6.5 soon.
However, investors should be cautious as any sudden reversal in the trend could lead to a sharp correction at $8.9. This will take place shortly to pave the way for the bull run.
FIL Price Prediction
Based on the technical analysis above, FIL is a worthy long-term investment that might take people from rags to riches. We forecast the price of FIL to reach the $8.9 mark by the end of Q1 2023. That being said, the coin will still experience some instances of bearish moves, but the general bias is bullish. If you want to invest in FIL Network in the short term, then it’s best to DYOR and ensure that it’s safe for you.
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