Filecoin Pumps +52% In A Single Day Amid Partnership With New NFT Ecosystem

File coin is trading in an uptrend here like many other altcoins. The Cryptocurrency Filecoin just went up +52% in a single day by breaking a Rising wedge pattern with strong buying volume and surges over +135.74% in a week.

What is Filecoin?

Filecoin is a system that hosts data in a decentralized manner with the goal of storing “humanity’s most important information.” Unlike cloud-storage companies which are prone to the problems of centralization, Filecoin leverages its decentralized nature to protect the integrity of a data’s location, keeping it easily retrievable and hard to censor.

Filecoin Quick Stats

Filecoin Price Analysis

At the time of writing, Filecoin is ranked 9th cryptocurrency globally and the current price is $289 AUD. This is a +135.74% increase since 26th March 2021 (7 days ago) as shown in the chart below.

After looking at the above 4-hour candle chart, we can clearly see that Filecoin was trading inside the Rising wedge pattern on the FIL/USDT pair. The first resistance was on the $220 AUD price levels which Filecoin broke with a strong bullish trend buying volume and is now heading towards the all-time high price in AUD. Seeing that many altcoins are holding strong this week, Filecoin is likely to continue to increase in the uptrend if the traders keep buying with high volume.

“A rising wedge is a technical indicator, suggesting a reversal pattern frequently seen in bear markets. This pattern shows up in charts when the price moves upward with pivot highs and lows converging toward a single point known as the apex.”

What do the Technical indicators say?

The Filecoin TradingView indicators (on the 1 day) mainly indicate FIL as a strong buy, except the Oscillators which indicate FIL as a neutral.

So Why did Filecoin Breakout?

General market sentiment seems to suggest cryptos are in the middle of the bull run season, which could have contributed to the recent breakout. Another reason for this sudden pump in price could be whales secretly buying Filecoin for the next Altcoins rally. It could also have contributed to some of the recent news regarding partnership with the new NFT Ecosystem.

Investment giant Grayscale recently launched a Filecoin trust, looking at purchasing FIL tokens and offering institutional investors the FIL-backed shares. Soon after, the trust attracted interest from mainstream investors: ByBt.com data showed that Grayscale Filecoin Trust added 45,550 FIL to its reserves.