Filecoin (FIL) Bulls are aiming for $ 100 in November

Some traders suggest that Filecoin (FIL) has lost momentum as the current price of $ 64 is 70% below its all-time high (ATH) of $ 238. However, this decentralized data exchange platform is gaining increasing acceptance and could lead to the price of FIL accelerating the current upward trend.

FIL is used to buy storage space and pull data from the Filecoin network. At the same time, users are rewarded for selling their excess storage through this open source platform. To compete with existing centralized cloud storage services, Filecoin has economic incentives to ensure files are reliably stored over time.

FIL price table | Source: TradingView

The past three weeks have shown the possibility of the previous downtrend reversing. This upward channel suggests support at $ 90 and resistance near $ 107 from mid-November, up 55% from current levels.

Partnerships and acquisitions could pave the way for the FIL to earn $ 100

On September 14th, Filecoin announced a referral program for members who have records larger than 90 terabytes. The network reached 9,000,000 terabytes in August, with more than 3,000 systems and storage providers providing capacity for more than 400 applications.

On October 13th, Filecoin announced a storage partnership with Flow Blockchain, powered by Dapper Labs. The service will set up decentralized data storage for NFTs along with the associated media assets. Flow platforms include Eternal, Starly, Versus and the online game Chainmonsters.

More importantly, FIL’s daily release on October 15 fell 23.8% to celebrate a year since the mainnet launched. This affects 7.5% of the shares held by the original investors, which after the three-year issue period corresponds to FIL 150 million.

Open Interest for Filecoin Futures | Source: Bybt

Since September 30th, Filecoin futures open interest (OI) has risen 45%, suggesting that investor interest is also starting to grow. This metric represents the total number of active contracts, regardless of whether they were actually traded on a given day.

Funding rate

To assess whether the market is trending up, one should analyze the funding rate for perpetual contracts. While the open interests of the buyer and seller always match, the leverage effect can be different. When Long requires more leverage, the funding rate becomes positive. So you are the payers for the short side.

However, the reverse situation occurs when the short side requires more leverage and causes the funding rate to go negative.

Financing Rate Filecoin Perpetual Futures Contract 8 o’clock | Source: Bybt.com

The graph above shows a brief period of over-indebted buyers in early September when funding rates hit 0.10% or 2.1% per week. More recently, Filecoin’s funding rate exceeded 0.06% every 8 hours when the FIL struggled with the $ 80 resistance on Oct. 8.

For now, derivative indices are showing little sign of investors giving up Filecoin, even though the price is still 70% below ATH. The recent partnership with Flow Blockchain increases network usability and lowers the FIL emission point so that the upward trend can continue three weeks ago. Nothing seems to stop the FIL from getting into the $ 90-107 range in November.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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