Cryptocurrency News

Filecoin Ignores Elon Musk’s Bitcoin FUD as FIL Price Rockets by 17%

FIL, the parent crypto asset of the Filecoin network, was one of the best-performing digital assets on Friday as it maintained its gains against a very bearish cryptocurrency market.

FIL/USD rose to an intraday high of 102.109 at around 0300 UTC, up over 37% on the 24-hour adjusted time frame. Later the pair made a sharp correction due to profit taking sentiment, but maintained its 24-hour gain, staying above 17%.

In contrast, Filecoin’s top rival Bitcoin (B T c) and ether (ETH) were down more than 6% and 7% respectively as of 0945 UTC.

After its recent downside moves, Filecoin attempts to post a solid rally. Source: FILUSD on TradingView

Almost all top-cap digital assets posted losses after Tesla founder/CEO Elon Musk tweeted a crypto breakup meme with the hashtag #bitcoin and a broken heart emoji.

According to the firm’s securities filing issued in February, Tesla had added $1.5 billion worth of BTC tokens to its balance sheet. However, Musk’s mysterious tweet Thursday night raised fears that Tesla is going to offload its entire bitcoin investment or has already taken off.

Bitcoin fell from around $39,500 to a low of $36,250 within a day. Meanwhile, the property Stay Positively Connected to Benchmark Cryptocurrencies also fell along. This includes Ether, the second largest cryptocurrency, followed by its top rival Binance Coin (bnb), Cardano (ada), and even Musk’s favorite Dogecoin (Doge)

Bitcoin knocked down all of its top rival after Musk’s tweet. Source: Mesari

Overall, the cryptocurrency market cap lost over $128 billion in the last 24 hours.

Why did Filecoin survive the bloodbath?

No major events took place in Filecoin’s decentralized file storage ecosystem this week. The last major announcement from the project team came on 27 May, in which it was manifest “Hyperdrive Network Upgrade” which proposes to increase its storage onboarding rate by 10-25 times the current rate.

Filecoin traders ignored the above update – the FIL/USD exchange rate fell by 4.36% on 27 May and 6.45% in the next session. Meanwhile, the pair traded bullishly in a tight consolidation range between May 20 and June 2, even though other tokens recorded wild intraday price fluctuations.

After consolidating inside the triangle pattern, Filecoin made a technical bullish breakout. Source: FILUSD on TradingView

Filecoin’s poor performance against rival tokens also pushed it Relative Strength Index (RSI), a technical indicator used to measure the price movement of an asset, near an oversold area. Traders typically increase their exposure to assets that appear undervalued according to the RSI reading – below 30. The RSI for FIL/USD was 35.96 before its latest price jump.

So it appears, Filecoin attracted traders because of its perceptible devaluation in comparison to other top digital assets. This provided a short-term hedge for traders attempting to offset their risks against the Musk-led crypto market decline.

FIL showed similar strength against bitcoin. The FIL/BTC exchange rate jumped nearly 40% after opening Thursday’s session at 18,286. On Friday in the opening session of London the pair corrected down about 8.25%. Nevertheless, he maintained his intraday profits, showing that traders were in no hurry to switch back to bitcoin.

Strong volume spikes on both the FIL/USD and FIL/BTC charts also indicated renewed interest in the trading instrument.