NEW DELHI (CoinChapter.com) — Filecoin (FIL) survived a wild 2023 ride to mimic the wider market trend of a recovery rally in Q4 2023, which could induce traders to consider buying Filecoin tokens in 2024. The late rally helped FIL price end the year at nearly 145% profits.
Despite the rally, Filecoin prices remain shy of its 2023 high of $9.5. However, the peer-to-peer file-sharing network’s partnerships and developments will likely bear fruit for FIL prices in 2024. As such, investors might look to buy Filecoin tokens in 2024.
Partnerships and Adoption Could See Traders Buying Filecoin in 2024
One key Filecoin partnership is with io.net, which develops cloud-based decentralized GPU computing power. The partnership would allow Filecoin’s ‘Storage Providers (SP)‘ an opportunity to earn extra rewards by sharing their GPU power.
The partnership, announced in early Dec. 2023, would allow Filecoin SPs to diversify their income stream and use cases. io.net Founder and CEO Ahmad Shadid said in the announcement
I believe that by leveraging the strengths of our respective technologies, we can unlock tremendous growth and drive innovation in the decentralized cloud and storage sectors.
The partnership has integrated 1,500 GPUs from Filecoin SPs, suggesting a positive response from users.
Additionally, the launch of the Filecoin Virtual Machine (FVM) on its mainnet is another reason to buy Filecoin tokens in 2024. The project would allow developers to create dApps on the network, adding to the utility and demand for the FIL tokens.
The FVM would also add new use cases for Filecoin, such as liquid staking, perpetual storage, and decentralized computing.
Filecoin partnered with defense contractor Lockheed Martin in early 2023 to create a space-accessible file-sharing network. The project is one of Filecoin’s more ambitious leaps, which could open new avenues of adoption for blockchain platforms and inspire traders to buy FIL in 2024.
Moreover, Filecoin launched the ‘Decentralized Storage Alliance‘ to help more firms transition to Web3 from Web2. The blockchain platform partnered with industry giants like Advanced Micro Devices (AMD), Seagate, and Ernst & Young (EY) to launch the initiative.
The alliance suggests that large firms are increasingly interested in Web3 and have growing confidence in decentralized storage platforms like Filecoin.
If only to diversify their portfolio, the bullish cues could inspire users to buy Filecoin in 2024. Positive market sentiment is also likely to rally the FIL price.
Profit Booking Forces FIL Price to Retreat
Meanwhile, profit booking forced FIL price to retreat on Jan. 2, shedding over 10% to reach a daily low near $7.1.
FIL bulls would try to defend the support near $6.9, trying to consolidate before targeting the resistance near $8.14.
However, a break below the immediate support could force the FIL price to test the 20-day EMA (red wave) support near $6. A price drop could likely see traders buying Filecoin tokens at a discount, hoping for a rally.
The RSI for FIL was neutral, clocking at 68.69 on the daily charts.
