FIL Price Analysis: Filecoin Explodes 40% as Network’s Upcoming Smart Contracts Impact Price

• Filecoin token FIL rose sharply, jumping as much as 40%
• FIL was trading at $7.54 at the time of publication.
• The jump fueled social media excitement about the blockchain’s March 1 launch of its Filecoin Virtual Machine (FVM)

Filecoin’s token FIL rose sharply, jumping as much as 40%, according to data from CoinMarketCap. The jump fueled social media excitement about the blockchain’s March 1 launch of its Filecoin Virtual Machine (FVM), a software platform that will introduce smart contracts and enable developers to design decentralized applications on the Filecoin network. FIL was trading at $7.54 at the time of publication, up 40% since the past day. The token is also up 59% since the past day. It wasn’t immediately clear what prompted the rally. Twitter user Colin Wu, who tweets under the name Wu Blockchain, generated buzz on the subject by sharing news of the pump along with information about the network’s upcoming smart contracts launch to his more than 250,000 followers. FVM’s addition to Filecoin will render the network a full-fledged layer 1 blockchain.

Key Levels
Resistance Levels: $15.00, $11.50, $8.50
Support Levels: $6.00, $4.50, $2.37

FIL/USD Daily Chart: Ranging

FIL/USD Daily Chart

As of February 18th, 2023, the FIL/USD price is $7.54 per FIL, according to CoinMarketCap. Over the past 30 days, FIL/USD has experienced a steady increase in value. On January 18th, the price was $4.63 per FIL, which means that the price has nearly doubled in just one month. Looking at the technical analysis of FIL/USD, the daily chart shows that the price is currently in a bid to start a strong uptrend with higher highs.

The Relative Strength Index (RSI) is currently in overbought territory, indicating that the price may be due for a correction or consolidation in the near term. However, the pair is still showing bullish momentum, suggesting that the price may continue to rise in the coming days or weeks.

FIL/USD 4-Hour Chart: Bullish

FIL/USD 4-Hour Chart

In the short term, the price of FIL/USD is likely to experience some volatility and potential price corrections, as the Relative Strength Index (RSI) is currently in overbought territory. This suggests that the price may be due for a correction or consolidation in the near term. On the other hand, a continuous run into immediate resistance near the $10.00 level is likely; a break to the upside would open the door for an upside push.

Meanwhile, the MA 50, which is currently around $5.650, can be used as a first line of defense if prices continue to decrease. If there is a clear break below this level, the 4-hour MA 200 at $5.35 could be tested. A short-term forecast for the FIL/USD price could see the token potentially continuing to rise in value, potentially reaching the $10.00 range in the coming weeks.

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