The Filecoin price has jumped by 16% in the past 24 hours, surging to $7.68 amid a sudden growth in trading volume yesterday.
FIL is now up by 38% in a week and by 52% in the past fortnight, yet the coin actually remains down by 10% in the last 12 months.
This annual decline suggests that FIL has just begun making up for lost time, with today’s rally potentially the beginning of a long overdue recovery for the altcoin.
Filecoin Price Prediction as FIL Becomes Best-Performing Coin on the Market – What’s Going On?
Filecoin’s chart reveals that the coin is dangerously close to overbought territory, meaning that it may suffer a dip in the next few days.
For now, its relative strength index (purple) has reached 80 today, indicating very strong buying pressure.
Source: TradingView
Likewise, FIL’s 30-day moving average (yellow) is now rising almost vertically after declining for almost a month up until a week ago.
This bullish reversal suggests that the coin has entered a bullish, expansionary phase, and that even if it does correct in the next one or two days, it may maintain considerable medium- and long-term momentum.
There’s one very clear reason as to why Filecoin has rallied in the past couple of days, which is that Solana has integrated with Filecoin’s decentralized file-storage network.
Solana’s integration with #Filecoin is a significant move away from centralized storage solutions and a remarkable step towards enhancing the reliability and scalability of the Solana blockchain.@solana is utilizing Filecoin to make its block history more accessible and usable… pic.twitter.com/1NcuaLNYT5
— Filecoin (@Filecoin) February 16, 2024
The above integration means that Solana is storing its ledger/block history on Filecoin, a move which provides a strong advertisement of the latter’s capabilities.
This news has provided the short-term catalyst for a long overdue recovery for the Filecoin price, which actually remains down by 96% compared to its all-time high of $236, set in April 2021.
So even though FIL’s indicators suggest that it could correct in the next one or two days, it still has massive amounts of space to rise, given the longer-term decline it has suffered.
And given the fundamental utility and value of a decentralized storage network, it’s very likely that FIL will continue to make considerable gains over the course of 2024.
Combined with growing market-wide bullishness (which stems from Bitcoin ETF mania), the Filecoin price could reach $20 in the next few months.
Alternative Alts with Strong Rally Potentially
FIL isn’t the only promising altcoin that, starting from a relatively low and undervalued base, could rally big this year.
There are also a variety of newer alts that look ready to rally big on the back of new exchange listings, with the best of these alts also combining bullish fundamentals.
For example, Sponge (SPONGE) is an ERC-20 cryptocurrency that has recently launched the second version of its popular SpongeBob-themed token.
It has risen by just over 130% since listing on Uniswap a couple of weeks ago, with its price likely to rise higher as more platforms list it.
Source: DEXTools/TradingView
SPONGE V2 took over from its predecessor for a couple of main reasons, with the first being that it introduces a new staking model.
It offers a minimum staking yield of 40% APY, which rate can increase if holders keep their SPONGE V2 staked for longer, with a maximum period of four years.
The SPONGE V2 yield has actually risen to reach triple figures in recent weeks, with the latest recorded rate being 245%.
Higher staking rates tend to be bullish insofar as they encourage more staking, which reduces a coin’s circulating supply.
In turn, this can boost its price, and what’s exciting about SPONGE V2 is that it boasts another fundamental reason to own it.
Namely, it will be the native token of an upcoming P2E racing game, which will enable players to compete against each and earn SPONGE tokens.
Investors can buy SPONGE V2 now by going to the official Sponge website, where investors have staked just over $10 million in SPONGE.
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