Journalist
Posted:
- Filecoin integrated the SushiSwap v2 and v3 AMM into its network.
- FIL price may pull back, but a move above USD 4.50 could be close.
Decentralized storage network Filecoin [FIL] has adopted SushiSwap [SUSHI] as the first decentralized exchange (DEX). To be clear, a DEX is a cryptocurrency exchange that operates on the blockchain without an intermediary.
SUSHI is added to storage
According to SushiSwap’s official X-handle, both the v2 and v3 Automated Market Maker (AMM) would be deployed on Filecoin.
An AMM is a DEX that makes it easy for traders to buy and sell cryptocurrencies using robotic algorithms instead of the usual traditional order book.
SushiSwap too revealed that users would be able to perform cross-chain transactions on Filecoin on 30 different blockchains.
According to DeFiLlama, SushiSwap’s DEX volume increased by 95.84% in the last seven days.
This jump in trading volume indicates that users have been actively using SushiSwap. It also means that there is a wide range of tokens available for exchange, increasing liquidity on-chain.
Source: DeFiLlama
As for the price action, SUSHI, despite a 30-day 77.89% increase has decreased by 15.94% over the past seven days. The price drop could be linked to profit taking by market players who had been holding the token at very low values.
FIL, on the other hand, had a great day. According to CoinMarketCap, FIL’s price rose 12.57% during the same period when the token reached $4.50.
FIL moves higher, SUSHI activity follows
A price analysis by AMBCrypto found that FIL’s price could continue to rise in the near term. This was due to the indications of the Exponential Moving Average (EMA).
At the time of writing, the 20 EMA (blue) was above the 50 EMA (yellow). This attitude is a sign of a bullish trend. Meanwhile, the Relative Strength Index (RSI) fell to 59.45.
The drop in the RSI value is evidence that buying pressure is decreasing. So there is a chance that Filecoin’s native tokens will pull back before a new uptrend.
Source: TradingView
When considering the active addresses on SushiSwap, data about the chain van Santiment revealed that the number has been increasing since November 8. The increase in the number of active addresses means that transactions via the SushiSwap network are rebounding from their lows.
With the Filecoin integration, there is a chance that the activity on the SushiSwap network may increase. Therefore, there could also be a jump in the 24-hour active addresses.
On a social level, Filecoin seemed to gain more recognition attention from the market.
Read Filecoins [FIL] Price prediction 2023-2024
This inference was based on social dominance. At the time of writing, social dominance had risen to 0.142%, indicating a surge in the hype that FIL has.
Source: Santiment
The increase in social dominance could be a sign that FIL has reached a short-term market peak. Therefore, participants should be wary of purchasing FIL at the current market price if they plan to make a quick profit from the token.
