Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Since mid-August, the price of Filecoin [FIL] has stayed below $4. Reclaiming the level could be a challenge in the mid-term due to uncertainty around Bitcoin [BTC].
Is your portfolio green? Check out the FIL Profit Calculator
We decided to go through the AI route in our pursuit of wanting to find out what the future has in store for Filecoin. ChatGPT can be quite useful at times, but it is not the most accurate either. So, our Filecoin-ChatGPT adventure had to have the right questions.
What are the special use cases of Filecoin?
This Filecoin ChatGPT query yielded multiple answers that elaborated upon the scope of its operations. Decentralized storage was the first and weightiest era, because it underscores the network’s main solution – a system that can offer a decentralized and immutable data storage solution.
Here’s a look at other use cases.
In addition, Filecoin offers an ideal solution for content delivery networks, as well as file redundancy and backup. In short, the answers that we got from Filecoin’s ChatGPT enquiry were reasonable and legitimate.
After establishing that ChatGPT handled the question properly, we embarked on the next step – finding out what it could predict about Filecoin’s future. Previous experiences with the AI platform and future predictions have often been unsuccessful. But what if we could use a different angle?
What does ChatGPT say about Filecoin?
The answer we got to the above question was quite sensible. ChatGPT commenced by stating that the network is poised to achieve success under the right conditions. This is especially important, considering the promising nature of the decentralized storage segment.
Filecoin is still in the early stages of adoption, just as is the case with most other top blockchain networks. This means mass adoption and critical mass have yet to be achieved. However, the network has achieved significant progress so far.
The AI bot expects FIL’s price to hit $200-$300 or higher by the end of the year — a ridiculously high figure by all accounts.
Filcoin’s market cap at press time indicated an underperformance, despite its impressive growth. It had a market cap of $1.4 billion, a fraction of its $3.58 billion market cap peak earlier in 2023.
A coin’s market cap is heavily influenced by the overall crypto market conditions and sentiment. But what about its price action?
Looking at FIL’s on-chain metrics
ChatGPT’s Filecoin price prediction inquiry yielded a price prediction of $200-$250. However, it noted that there are multiple factors that affect prices.
The good news is that the network is one of the few that operate within its decentralized storage niche market. This is promising for the future of FIL.
As far as prices are concerned, FIL traded at $3.207 at press time. Both its Relative Strength Index (RSI) and Money Flow Index (MFI) rested below the neutral 50-level. Its On Balance Volume (OBV) also showed a downtick.
Read Filecoin’s [FIL] Price Prediction 2023-24
The on-chart metrics of FIL point towards a bearish price movement in the short run.
Though ChatGPT is enthusiastic about the performance of Filecoin in the future, its on-chain metrics are not so.