Over the past 24 hours, Filecoin’s FIL token has skyrocketed, rising nearly 60%. Let’s take a look back at this sudden and unexpected performance.
Filecoin (FIL) rises nearly 60%
Since Thursday afternoon, the price of Filecoin’s FIL has skyrocketed, rising 58.5% over the last 24 hours to $2.12 at the time of writing. Beginning around 5 p.m. Paris time, this rise, while impressive, must be put into perspective, given that the asset has not yet managed to recoup the losses incurred during the fall on October 10:
In addition, it should be noted that the asset is one of a long list of altcoins that have failed to exceed the all-time high (ATH) of the previous bull run. After reaching a record high of nearly $237 on April 1, 2021, FIL is now down more than 99%.
Regarding today’s surge, it is curious to note that it does not seem to be the result of any particular news. Admittedly, Filecoin’s core business of decentralized storage offers interesting synergies with artificial intelligence (AI), a sector with which the Filecoin Foundation has formed various partnerships, but this is not enough to justify such a localized rise.
In the AI sector, Filecoin pointed out yesterday that it was included in Fast Company’s 2024 list of upcoming major technological innovations for its decentralized storage network.
In addition, some observers are talking about a short squeeze on FIL, i.e., a scenario in which so many short sellers have been liquidated that buybacks have caused buying pressure. This should also be put into perspective, as data shows only $5.7 million in short liquidations over the past 24 hours.
FIL must now confirm this upturn by returning to the levels it lost in recent weeks, otherwise this surge could be nothing more than a flash in the pan.
