Bitmain to launch Filecoin token mining machines, venture announcement rescues FIL holders from 10% losses


  • Bitmain has announced the launch of Filecoin mining machines, marking its first foray into the FIL ecosystem.
  • With monthly delegated staking service fees as low as 0.5%, traders will earn more with little computational energy.
  • The announcement has attracted bulls back to the FIL market, breaking the 10% fall that began on July 14.

Bitmain, the world's leading manufacturer of cryptocurrency mining servers via its ANTMINER branch, has revealed plans to develop Filecoin token mining machines, set to premiere in the market on July 21. The venture has inspired a wave of optimism in the FIL market, causing a resurgence among the bulls to cut short the 10% losses streaming out since mid-July.

Also Read: What can crypto traders expect from Fed's interest-rate decision?

Bitmain landmark announcement offers support for Filecoin price

Bitmain, a giant Bitcoin mining machines manufacturer and renowned miner, has announced its first foray into the Filecoin ecosystem, marked by the development of FIL token mining machines. Based on the announcement, individual units will retail for $38,888 and have a hash rate of up to 4,300T each.  

The announcement also pedals a delegated staking service fee at a low monthly rate of 0.5%. This offers traders who participate in the staking service a chance to earn more with little computational energy. In delegated staking, users confer their staking rights to the validators or the staking pool itself, meaning they do not participate directly. Nevertheless, they can be part of the rewards these validators generate.

Filecoin is the handiwork of Protocol Labs, originally designed to be a blockchain-based collaborative digital storage and data redemption technique. It is an open-source, public crypto, and digital remittance system.

Filecoin price implication

Filecoin (FIL) price has benefited from the announcement, finding support around the $4.26 level after a six-day slump of up to 10%. The token is up 5% over the last 24 hours, with surging interest for the token as evidenced by the 120% increase in 24-hour trading volume.

Filecoin price has also flipped the 50-day Exponential Moving Average (EMA) at $4.31 into support to exchange hands for $4.39 at the time of writing. The Relative Strength Index (RSI) favors the upside, tipping north to show rising momentum. The same goes for the Awesome Oscillators, which were positive to show that bulls are leading the market.

However, traders should wait for a decisive daily candlestick close above the 100-day EMA at $4.53 for a confirmed continuation of the June uptrend.

In a highly bullish case, Filecoin price could leap higher to tag the 200-day EMA at $5.14. Such a move would constitute a 15% climb from the current level. This is plausible unless early profit-takers pull the trigger.

FIL/USDT 1-Day Chart

On the flip side, if traders start cashing in on the Bitmain-inspired gains, Filecoin price could retrace south, losing all the ground covered on July 20. In the dire case, the $4.26 support could break, clearing the path for a landslide.

The red histograms of the AO momentum indicator suggest the presence of bears in the FIL market, with the decreasing volumes of the same histograms suggesting a bearish pull to the south.


Like this article? Help us with some feedback by answering this survey:



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP