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.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appSource: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.