Bitcoin's price slipped below $51,000 again today, and Ethereum's to $2,900; the cryptocurrencies are extending the downward impulse. The altcoins are also losing, with Filecoin standing out today with a drop of more than 6%, which came shortly after the project announced a business partnership with the Solana blockchain. The fuel for growth, however, quickly ran out in the face of the Wall Street correction and Bitcoin's retreat.
- Solana announced a strategic integration of Filecoin's technology to improve the scalability and availability of data in the blockchain ecosystem. Leveraging Filecoin's decentralized file storage capabilities, the developers conveyed that they aim to optimize the availability of on-chain transaction history, increasing the overall reliability of the infrastructure.
- Following the announcement, Filecoin saw a surge 3 days ago, which continued until yesterday. The developers indicated that the partnership with Solana heralds the sector's move away from centralized storage solutions. However, it does not seem that in an environment of weakening Bitcoin, the project can count on a quick return of speculative interest.
Filecoin chart (H4)
Looking at recent upward impulses, we see that they were characterized by a very dynamic course, with the price erasing a significant portion of the movement each time. We also see a potentially bearish double peak formation around $7.7. These are levels whose breakout will be crucial for Filecoin's continued upward momentum. Looking at the RSI and the intersection of the averages on the MACD, we can expect a deeper correction, although as long as the price is above $7, it still seems a possible scenario to halt the declines and return to growth as soon as Bitcoin and Ethereum stabilize. In an extreme negative scenario, a test of even $5.5 (SMA200) seems possible; however, a high double-digit drop in Bitcoin would probably be needed for this.
Source: xStation5
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