Long Beach (CoinChapter): The price of Filecoin has risen massively over the last few days. This is due in large part to the development around its mining machines and hosting. Shanghai-based online game operator The9 had previously signed a $10 million agreement with a Filecoin mining machine vendor, but they aren’t done yet.
On Tuesday, The9 signed a $2 million Filecoin mining machine purchase and hosting agreement with a Filecoin mining service provider. The coin has grown in popularity in China due to its mining incentives. As such, the move makes sense for The9. Additionally, they are also known to own and operate an independent node on the Filecoin blockchain.
The9 owns 8 Pebibytes of storage on Filecoin network
The9 also owned around 8 Pebibytes of effective storage mining power in the Filecoin network, but that increased to 80 after the recent deal was struck. This caused the price to rise around 25% in under 16 hours on Tuesday.
Unfortunately the price movement has formed a rising wedge pattern. This happens when the swing points are joined using trend lines. This formation has a bearish bias that is confirmed after a breakdown of the lower trend line. In other words, a breach of the $138.95 level will trigger a 17% crash, determined by measuring the distance between the swing high and low at the broadest part.
Moreover, the preemptive cycle top signal portrayed by the MRI on the daily chart suggests that the Filecoin price might be due for a reversal toward its lower trendline.
But despite this price concern, institutional investors are lining up to put their money in the altcoin. According to data on Bybt, the Grayscale Filecoin Trust has added 29.5K FIL. Grayscale now owns 45.5K FIL coins with $3.2 million in net assets under management.
FIL has risen by 125% over the past week and 450% in 2021 overall.