• Protocol Labs, the company behind Filecoin [FIL], announced it will layoff 21% of its workforce due to an economic downturn.
• At press time, FIL traded in a tight range and buyers lost control of the market.
• A bearish divergence between the Chaikin Money Flow (CMF) indicator and FIL’s price had been in place since mid-January, indicating a potential trend reversal or market correction.
Protocol Labs Layoffs Impacting Filecoin [FIL]
Protocol Labs, the company behind decentralized file storage network Filecoin [FIL], announced on 3 February that it would layoff 21% of its workforce due to „an extremely challenging economic downturn,“ according to CEO Juan Benet. The layoffs will reduce Protocol Lab’s staff by 89 roles across PL Corp, PL Member Services, Network Goods, PL Outercore, and PL Starfleet. It is unclear if any members of the Filecoin team were impacted by this move.
FileCoin Price Movement
At press time, FIL was trading at $5.60 – a 86% increase from where it began 2021 – and had remained in a tight range for over a week. This could indicate indecision in the market or lack of momentum or volume necessary for prices to break out either way from its current position. The Positive Directional Indicator line (+DI) also confirmed that buyers have lost control as it steadily declined towards intersecting with the Negative Directional Indicator (-DI). Should this happen, sellers would regain full control leading to a possible reversal in FIL’s price direction.
Chaikin Money Flow (CMF)
The Chaikin Money Flow (CMF) further revealed that there has been a bearish divergence between this indicator and FIL’s price since mid-January; while prices rose during this period CMF fell instead which is commonly seen when buying pressure begins to weaken thus indicating potential reversal or correction may be on its way soon.
With Protocol Labs announcing layoffs impacting 21% of their staff and indicators pointing towards weakening buying pressure for FileCoin [FIL], it appears that FIL may be due for a possible price drawdown soon should sellers take back full control of the market from buyers once again.
FileCoin Price Prediction 2023-24
It remains too early to predict what might happen with FILECOIN’s price longterm but one can make an educated guess based on current trends and data available about crypto markets generally speaking over time periods such as these two years ahead given various factors such as adoption rates increasing etcetera could see FILECOIN gaining even more value than now so stay tuned!