• Filecoin (FIL) has experienced a 2.8 percent drop in the past 24 hours amid the broader cryptocurrency market sell-off but still maintains a 4.5 percent net positive gain on the weekly chart.
• Technical indicators, such as the Relative Strength Index (RSI) and the Volume Weighted Average Price (VWAP), suggest a potential price increase for Filecoin.

Amid the sell-off in the broader cryptocurrency market, decentralized storage cryptocurrency Filecoin (FIL) has also dropped by 2.8 percent in the last 24 hours, to $3.35. However, on the weekly chart, the FIL price still remains 4.5 percent in net positive.

The broader cryptocurrency market has been moving quite in tandem with the Bitcoin price movement recently. Numerous traders favor the trend-following strategy, particularly in the realm of cryptocurrencies. Consequently, cryptocurrencies exhibiting strong recent performance are typically sought after for investment. Momentum, often gauged over a seven-day period, exceeding 100 is indicative of positive price growth. Currently, Filecoin boasts a momentum value of 104.768, signifying a favorable trend.

Nonetheless, Bitcoin’s future trajectory hinges on a multitude of factors, primarily the trust bestowed upon it by the crypto community in terms of its stability.

Filecoin Technical Indicators

Filecoin presently registers a value of 22.613 on the Relative Strength Index (RSI), indicating it is undervalued as the RSI resides below 30. This signifies the potential overselling of the cryptocurrency. Conversely, an RSI value exceeding 70 would denote overbuying and potential overvaluation. Consequently, the RSI hints at a probable price increase for Filecoin.

The Relative Strength Index (RSI) gauges the strength and volatility of financial instruments, like cryptocurrencies, on a scale from 0 to 100. It quantifies the extent to which upward movements outweigh downward ones over a specific timeframe. However, it’s vital to note that RSI should complement other analytical tools and fundamental data to facilitate well-informed trading decisions.

At its current value of $3.35, Filecoin falls below the 200-day moving average (SMA 200) of $5.08. Traditionally, surpassing this moving average indicates a favorable trend, while falling below signifies an adverse one. In this context, the indicator implies a relatively unfavorable performance for the cryptocurrency.

Another essential metric is the Volume volume-weighted Average Price (VWAP), which serves as an indicator of market sentiment. If the price surpasses the VWAP, a positive trend is typically inferred, whereas a price below it suggests a negative trend. The current volume-weighted average price stands at $3.38, while the share price is $3.35, indicating that the current price is marginally below the VWAP. However, the disparity is less than 3.0 percent, so it should be considered with caution.

It’s important to note that while the Moving Average (SMA) covers a 200-day period, providing insights into medium-term trends, the VWAP is generally calculated daily, making it more suited for day trading signals.

Filecoin Disappoints in 2023

While several altcoins have registered a strong rally in 2023, Filecoin (FIL) has disappointed with flat gains. For Filecoin investors still holding their portfolios, there might be a glimmer of hope. Experts are now suggesting a new hybrid meme coin as a potential alternative for a chance at quick recovery and substantial profits in 2023.