Filecoin (FIL) price has come under pressure in the past few weeks as concerns about the platform continues. FIL dropped to a low of $5.26, which is about 44% below the highest point this year. So, will the latest Filecoin cryptocurrency news move the token?
Filecoin takes on Amazon’s AWS
Filecoin has made two important news this year. The first one was the launch of the Filecoin Virtual Machine (FVM). FVM is made up of a combination of smart contracts and provable storage. This means that developers can now build dApps that leverage the technology provided by Filecoin.
Filecoin FVM is now being used by the likes of Sushi, Brave, Ocean Protocol, and Spheron among others. However, the biggest risk for the network is that it is facing significant competition in the industry including players like Ethereum and Stacks.
The most recent Filecoin news is that the developers are now focusing on disrupting Amazon AWS and Microsoft Azure. That happened with the launch of Filecoin Web Services, which is a set of compute technologies built on top of Filecoin Network.
Therefore, the difference between Filecoin Web Services and AWS and Azure is that it leverages decentralized technologies. Centralized entities use their own massive data centers that are located around the world.
The new product has several features. Estuary is made up of Estuary Node that is easy to deploy and manage. It also provides an easy-to-use for monitoring and managing storage. It also has the Delta Technology Stack that has a suite of open-source tools for creating and managing Filecoin storage.
Filecoin Web Services faces tough challenges competing with the centralized computing platforms. In addition to their first-mover advantage, it means that they have leverage. Also, companies want to compute with well-known brands that have more features and scale.
Filecoin price prediction
The daily chart shows that the FIL price has been in a bearish trend in the past few days. It has moved below the important support at $6.60, the highest point in November last year. It has moved below the 25-day and 50-day moving averages while the Awesome Oscillator has moved below the neutral point.
Filecoin’s MACD has continued falling in the past few days. It also remains along the lower side of the ascending trendline. Therefore, the coin will likely have a bearish breakout as sellers target the next key support at $4, which is about 4% below the current level.
Invest in the top cryptocurrencies quickly & easily with the worlds largest and most trusted broker, eToro.
81% of retail CFD accounts lose money