Filecoin (FIL) is the only bullish cryptocurrency in the top 50 by market capitalization. The cryptocurrency market is currently bearish with the total market capitalization down 6.88% to $1.65 trillion as of the time of writing this report.
The FIL which is currently ranked #22 by market capitalization, reached an intraday high of $102.10, up more than 37%. Although the coin had a sharp correction later on profit-taking sentiment, it is still the only coin showing positive gains in the last 24 hours, staying upward of 13.50%.
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The top 2 cryptocurrencies, Bitcoin (BTC) and Ether (ETH) however, are down by more than 6% and 7%, respectively.
The sell-off in the cryptocurrency market is a result of Elon Musk’s cryptic post about a breakup meme with a hashtag #bitcoin and a broken heart emoji.
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How Elon’s Influence Came to be
In February, Elon Musk announced that Tesla had added $1.5 billion worth of BTC tokens to its balance sheet. After this, in May, Elon Musk shared concerns about Bitcoin’s carbon footprint to the world and announced that his electric car manufacturing company would no longer accept the cryptocurrency for payments because of environmental concerns. This and other factors caused the leading cryptocurrency to crash from its ATH to as low as $30,000.
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Following this decision, rumours also spread that his firm may be dumping its Bitcoin holdings, spreading more fear and doubt in the market. Musk has however refuted claims suggesting that Tesla will sell its Bitcoin. However, Musk’s mysterious tweet on Thursday night raised fears that Tesla may go on to or may have already unloaded its entire Bitcoin investment.
Bitcoin dropped from around $39,500 to as low as $36,250 just within hours of the tweet. This caused the altcoin market to do the same as a result of Bitcoins market dominance and positive correlations. The second-largest cryptocurrency Ether, Binance (BNB), Cardano (ADA) and Dogecoin (DOGE) dropped in the same manner.
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Why Filecoin is Bullish
There is no news surrounding Filecoin so far and the last major announcement from the project’s team came on May 27, wherein it revealed “HyperDrive Network Upgrade” that proposes to boost its storage onboarding rate by 10-25 times the current rate.
The bullish trend of Filecoin’s is pushed by its Relative Strength Index (RSI), a technical indicator to measure an asset’s price momentum, just near an oversold territory. Traders typically increase their exposure in assets that appear undervalued per the RSI readings if it’s below 30. FIL RSI was 35.96.
Filecoin’s bullish trend is a result of investors being attracted to its perceivable undervaluation compared to other top digital assets. That provided a short-term hedge to traders attempting to offset their risks against the current market decline perpetuated by Elon Musk.
There are strong volume spikes on FIL which indicates a renewed interest in the cryptocurrency. FIL is currently trading $86.23, up 14.88%.
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