After partnering with Polygon, can this project’s native coin resurrect itself?

Lavina Daryanani
Filecoin-Polygon
Source: Pixabay

Filecoin and Polygon recently entered into a partnership to jointly promote developments in NFTs, games, and the metaverse. Filecoin’s official blog post on 15 February brought to light the same.

Both parties have developed tutorials, integration grants, and hackathons to help developers and NFT project parties from Polygon integrate with IPFS and Filecoin. Well, Filecoin’s durability and Polygon’s scalability, in conjunction, would open the door for developers to come up with ameliorated use cases.

This is not the first time that both these projects are partnering. Back last year in August, it was announced that Polygon would offer free storage costs for projects looking to build on the Filecoin-Polygon bridge. The said projects also jointly organized the Mars Hackathon, where a host of developers came together to build new applications.

Is Filecoin’s ‘breakout moment’ finally here?

Filecoin’s performance on its price chart has been pretty deplorable on the macro-frame. The initial few months of last year saw the coin rally and achieve new highs. It locally peaked at $238 in March 2021 but commenced its lousy downtrend journey right after.

In the July-August period, Filecoin did try to renew its bullish phase. It was successful to some extent, but bulls gave up earlier than expected. Since then, the coin has been trading in a descending channel.

Source: TradingView

After shedding more than 90% of its value from its ATH, there’s hardly any room for Filecoin to stoop lower. In fact, on its weekly chart, Filecoin has already started exhibiting concrete breakout signs. If triumphant in doing so, this coin would be able to kickstart another leg up from here on.

The FIL market has sufficient momentum too at this stage to foster a trend change. The current volatility is hovering around its multi-month high levels, indicating that FIL’s price movements would be fierce rather than sober at this stage. The trade volumes have also been spiking every now and then implying that market participants have closely been keeping an eye on this coin and are in a position to aid FIL’s rally.

Source: Messari

Concluding words

Filecoin’s 3% inclination over the past day when almost all the top coins have been trading in red is a testament to its resolute bullish inclination. Also, it shouldn’t be forgotten that Filecoin already ranks 4 amongst the market’s Web 3.0 coins and its collaboration with Polygon would give it an additional hand to help it mold the new generation of the world wide web. Keeping in mind what Web 3.0 has to offer and the community euphoria associated with it, the tie-up is all set to be a step in the right direction.