Filecoin [FIL]: Investors yowling ought to respect the law of opportunity

ambcrypto.com:

The crypto market crash of last week has affected every token present in the worst possible way. With plummeting prices and a slow road to recovery, most tokens are still struggling to reach their road to recovery. Filecoin’s native cryptocurrency FIL is no different.

The token registered significant sideways action in the last four days. This is despite a comeback by crypto bulls during the weekend, leading to a significant upside for most of the top cryptocurrencies. FIL’s performance was lacking, if we consider gains by top coins, despite which it remains one of the most promising cryptocurrencies. However, we have to look back at the latest market events in order to understand why FIL is so promising.

UST’s crash highlighted some of the risks associated with cryptocurrency investments. The event has further forced investors to minimize their risk exposure, and a cryptocurrency’s utility is a key determinant. Filecoin’s decentralized file storage model provides an actual service that has multiple perks. For example, it offers data immutability and secure storage in a safe and decentralized manner.

The Filecoin model provides real-world utility while solving problems associated with centralized data storage. FIL is tied to the Filecoin ecosystem and this means that it will likely benefit from long-term growth. However, FIL’s current performance is heavily correlated to Bitcoin.

FIL traded at $8.62 at the time of writing, a notable gain from 12 May’s low at $6.71. It is down by roughly 68% from its end-of-March top. It is also a long way off from its $430 historic high. This means it is heavily discounted and due for a significant recovery.

Source: TradingView

The latest bear market pushed FIL into oversold territory