Why did Filecoin Price rise by 75% in the past week?

Key Takeaways:

• Filecoin price displayed a magnificent jump in the past few days and accumulated over 100% jump with a collective surge of over 260% since the start of 2023
• The buying pressure has mounted and hence the bulls are believed to maintain a notable upswing in the coming days ahead
• The development activity is on the rise and hence it may have a positive impact on the price that may secure double-digit price levels soon

Filecoin underwent a spectacular rise of more than 100% in the past few days. With the upswing, the FIL price has broken out from the bearish influence and with a bullish daily close, the probability of a fine upswing may intensify. The platform witnesses a massive influx of liquidity in the past few days largely dominated by buyers. Hence, triggered a notable spike, uplifting the price from the narrow consolidation. 

One of the reasons behind the massive spike could be the surging market sentiments. However, the market participants became bullish on Filecoin when the platform announced the launch of Filecoin Virtual Machine (FVM) on the mainnet that enables the network to administer smart contracts, compatible with the Filecoin chain. 

Besides, the platform also recorded a fine rise within the DeFi space as well. The total value locked (TVL) of Filecoin skyrocketed to mark new highs above $2.4 million. The massive upswing is believed to have been triggered by Filet, the decentralized staking platform, specifically for Filecoin, where-in one can also mine the token easily.

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Filecoin Token Technical Overview

Source: Tradingview

• With the recent 100% jump registered in the past few days, the price managed to rise beyond the resistance of the descending parallel channel
• The price is attempting to slice through the channel and spark a firm upswing to reach the higher targets mentioned above
• The initial target is a little distant, above $10. But securing these levels may pave way for the price to test the upper targets and reach the pivotal resistance
• However, the RSI is fluttering within the oversold levels and displaying the possibility of a bearish divergence
• Therefore, the FIL price may again retest the resistance of the channel or even slip below these levels before triggering a strong bullish wave toward the north

Filecoin Token On-Chain Analysis

Filecoin Development Activity

Source: Santiment

The development activity of the platform shows the firmness of the core team working on new upgrades and features to strengthen the platform. It is measured using the work being done by the developers on the GitHub repositories that are generally public. The work is gauged in terms of ‘quantities’ which is nothing but the number of commits pushed on GitHub. 

The development activity in the case of Filecoin has been soaring high ever since the levels bottomed during the last few days of 2023. The massive upswing indicated a huge number of events happening over the platform that has witnessed a minor pullback in the past few days. However, the rise in development activity also induces huge confidence in the platform, where-in market participants expect a bullish breakout very soon.

Filecoin Total Weighted Sentiments

Source: Santiment

The total weighted sentiments are the measure of the market sentiments including all the positive and the negative mentions. It considers all the mentions, posts, etc, and compares them with the frequency of their occurrence over time. If the derived value is within the positive ranges, then it is considered that the market sentiments of the token are positive, and vice versa. 

In the case of Filecoin, the weighted sentiments are pretty bullish as the metrics have undergone massive spikes now and then. It indicates the participants are pretty bullish on the FIL price. Therefore, the sentiment, if it remains bullish for a long time, may impact the price in a longer time frame. 

Additional Read: BitTorrent Price Prediction

Concluding Thought!

The Filecoin price has gained immense user attention as it surged with the positive upgrades on the platform, raising market sentiments. Moreover, development activity has also spiked, due to which a sensible rise may be expected in the coming days. Nevertheless, the bulls appear to be well-positioned and hence could reach a double-digit figure very soon.