Over the past 24 hours, Filecoin’s FIL token has skyrocketed by nearly 60%. Here’s a look back at this sudden and unexpected surge.
Filecoin (FIL) Rises Nearly 60%
Since Thursday afternoon, the price of Filecoin’s FIL token has soared, rising 58.5% over the past 24 hours to $2.12 at the time of writing. Beginning around 5 p.m. Paris time, this rally—while impressive—must nevertheless be put into perspective, given that the asset has not yet managed to recoup the losses incurred during the crash on October 10:
FIL daily price chart
Furthermore, it’s worth noting that FIL is among the very long list of altcoins that have failed to surpass their all-time high (ATH) from the previous bull run; after hitting a record high of nearly $237 on April 1, 2021, FIL is now down by more than 99%.
Regarding the surge we’re discussing today, it’s interesting to note that it does not appear to be driven by any specific news. Admittedly, Filecoin’s core business in decentralized storage offers interesting synergies with artificial intelligence (AI)—a sector in which the Filecoin Foundation has formed various partnerships—but that alone is not enough to justify such a localized surge.
In the AI sector, Filecoin also noted yesterday that it was included in Fast Company’s 2024 list of the next major technological innovations, specifically for its decentralized storage network.
Furthermore, some observers are suggesting a short squeeze on FIL—that is, a scenario in which so many short sellers were liquidated that their buybacks triggered buying pressure. This should also be put into perspective, as data shows only $5.7 million in short liquidations over the past 24 hours.
Now, FIL must confirm this upward trend by regaining the levels lost over the past few weeks; otherwise, this surge could prove to be nothing more than a flash in the pan.
