The entire crypto market has pumped heavily in the past week. Top coins like Bitcoin, Ethereum and BNB have grown between 10% and 20%, and in fact, the total capitalization of the crypto market has also climbed to new highs. Filecoin

However, on the weekly timeframe, Filecoin (FIL) didn’t fare that well, falling over 11%.

FIL price table | Source: Tradingview

So the question remains whether the FIL trend will reverse in the short term or not?

Change the melody

While the short-term gains aren’t overwhelming, the general sentiment has slowly changed, suggesting that the current downtrend may not last long.

At the time of writing, the funding rate curves of all major exchanges, including Binance, ByBt and OKEx, have been found to have shifted noticeably.

Their dominance in the positive zone suggests that the majority of traders are currently bullish. If the upward trend in the funding rate chart continues, there is a chance that the FIL price will react positively.

Source: ByBt

Filecoin’s Open Interest (OI) is also back on track, reflecting a cumulative value of over $ 350 million at the time of going to press. All in all, the rising course numbers indicate a healthy speculative interest of the market participants in the FIL.

Look beyond the short term

Well, one could argue that market sentiment changes in minutes and is usually not critical in the long run. In order to judge the bigger picture, other factors need to be considered.

The state of the fundamentals provides investors, to some extent, with some sort of guarantee of the long-term fate of the coin.

Let’s take a look at the development activities. Filecoin currently has over 162 repositories on Github. In simple terms, a repository contains all of the files for a given project along with their revision history.

The snapshot attached below shows that the “storetheindex” archive was updated – 38 minutes ago, while “Lotus” and “venus” were last updated a few days ago.

This is essentially a sign that the developers and other community members are actively contributing to the project in terms of development.

Additionally, Filecoin recently partnered with Flow and is now its official storage partner. The integration of the above technologies will accelerate end-to-end ownership of NFT and further support the influx of new entrants into the Filecoin arena.

Source: GitHub

Additionally, Grayscale’s investment vehicle FIL has assets under management (AUM) of over $ 5.9 million from $ 5.5 million in August, meaning corporate interest is starting to take shape too .

Therefore, the downtrend on the price chart will not last with positive sentiment and solid fundamentals. Those who missed the FIL train can hop on anywhere around $ 60 for long-term profits.

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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.

Mr. Teacher

According to AMBCrypto

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