Filecoin price soars 11% on this major network upgrade
- Filecoin price is up 11% after the successful launch of the FVM.
- FIL could break above the $7.254 resistance level before targeting the local peak at $8.541.
- A daily candlestick close below the 200-day EMA at $6.507 could invalidate the bullish case.
Filecoin price boasts four consecutive green bars as bulls lead the market. The rally follows the hype around the launch of the network’s FVM (Filecoin Virtual Machine), which went live on March 14 at 3:14 PM UTC. As reported earlier, the debut marks the Filecoin blockchain’s transition to start supporting smart contracts and user programmability. This is an enabler to unlocking the enormous potential of an open data economy.
Today, the Filecoin community is proud to announce the successful launch of the #FVM! As of 3.14PM UTC, the Filecoin blockchain now supports smart contracts & user programmability, unlocking the enormous potential of an open data economy. Learn more: https://t.co/m2vWwkq7uA pic.twitter.com/RfeYFYGNA9
— Filecoin (@Filecoin) March 14, 2023
Filecoin price eyes a 22% increase to the local peak
Filecoin price at the time of writing was $6.955 after gaining 11.42% in the last 24 hours. Trading activity on the network during the same timeframe increased by 21.19% as community members cheered the FVM launch. While FIL enjoyed strong support downward, the altcoin could see a 22.91% increase to the range high of $8.541.
An increase in buyer momentum in the FIL market could set Filecoin price to decisively flip the immediate obstacle at the $7.254 resistance level into support and use it to ascend past the $8.000 mark before tagging the $8.541 target. This move would constitute a 22.91% increase from current levels.
The upward-facing Relative Strength Index (RSI) above the mean line validated the bullish outlook for Filecoin price. The price strength at 58 showed there was still more room upward before FIL becomes overbought. Accordingly, the altcoin’s market value could increase.
FIL/USDT 1-day chart
Conversely, if investor greed comes into play and traders start booking early profits, Filecoin price could correct from the current directional bias. Such a move could see FIL drop below the 200-day Exponential Moving Average (EMA) at $6.507 before retracing lower. A daily candlestick close before this level could render the bullish narrative invalid.
Below the said level, spooked investors could rush to sell and cause the Filecoin price to descend lower, potentially below the support confluence due to the horizontal line and the 50-day EMA at $5.941.
In desperate attempts to avoid losses, Filecoin price could flip the 100-day EMA support level at $5.536 into resistance and nosedive to tag the $5.288 or the $4.684 support levels.
The Filecoin price could revisit the $4.000 swing low in extreme situations. Such a value drop would constitute a 42% dip from current levels.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
