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Filecoin [FIL] investors who are about to cut losses should read this

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Filecoin [FIL] investors who are about to cut losses should read this
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  • Filecoin’s Virtual Machine (FVM) to launch on mainnet in March 2023.
  • Market indicators and on-chain metrics of the FIL coin were bearish. 

Filecoin [FIL] released its latest edition of Filecoin News, highlighting all the major updates to the Filecoin ecosystem. As per the blog, Filecoin plans to launch its much-awaited Filecoin’s Virtual Machine (FVM) on the mainnet in March 2023.

Prior to the release, FIL is organizing a one-day event that will feature exclusive FVM content and a builder showcase. 

But the question is- Why should it matter to you?

To clear the air, the Filecoin Virtual Machine (FVM) is a runtime environment for smart contracts, also called “actors,” on the Filecoin network.

FVM expands Filecoin’s usability and unlocks the huge possibilities of an open data economy. Moreover, the Filecoin Foundation (FF) also published its 2022 Annual Report, which provided a broad overview of the ecosystem’s accomplishments in 2022 and its plans for 2023. 

How much are 1,10,100 FILs worth today?

How did the market react?

These positive developments did not reflect on FIL’s chart, which was painted red, at press time.

FIL registered a more than 11% decline in price over the last week, and at press time, it was trading at $4.91 with a market capitalization of more than $1.9 billion.

FIL’s market indicators also painted a somewhat bearish picture, as most of them suggested a further downtrend in the coming days.

At the time of this writing, the MACD displayed a bearish crossover, which was concerning. FIL’s Chaikin Money Flow (CMF) and Relative Strength Index (RSI) were both resting near the neutral mark.

Moreover, the Bollinger Bands suggested that FIL’s price was entering a non-volatile zone, further decreasing the chances of a northbound breakout anytime soon. The Money Flow Index (MFI) was, however, near the neutral mark.

Source: TradingView

Read Filecoin’s [FIL] Price Prediction 2023-24

More reasons to worry

Like the market indicators, Filecoin’s on-chain metrics also supported the sellers. Santiment’s chart revealed that FIL’s demand in the futures market was decreasing as its Binance funding rate went down last week.

Furthermore, FIL’s development activity decreased considerably over the last seven days, reflecting the lessened efforts of the developers in improving the network.

A setback for FIL was that its price decline was accompanied by a hike in volume, which legitimized the downtrend. While its price plummeted, negative sentiments around FIL increased.

Interestingly, DeFiLlama’s data revealed that after a significant increase in FIL’s TVL in the previous month, the growth slowed down.

Source: Santiment

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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