According to Sia's whitepaper, its long-term goal is to compete against existing storage solutions. It considers itself to be in direct competition with cloud storage providers like Amazon, Google, and Microsoft. Sia (SC) can offer storage rates competitively because of its decentralized nature.
Files on the Sia network can be divided into 30 encrypted segments. Each segment is uploaded to a different host for redundancy. Smart contracts are used to enforce agreements between hosts and uploaders. Siacoin is the payment method on the network. Renters pay hosts using SC, and hosts lock SC in smart contracts to secure it.
Skynet, the company behind Siacoin and Siastream, has announced a number of products that are built on top of Sia's network. These include SiaStream, a cloud-based media streaming app, and the Skynet network, its flagship content delivery network and file-sharing network.
The company has received grants and funding from Paradigm, Bain Capital Ventures, and INBlockchain in several rounds. Each storage-related transaction on Sianet is subject to a 3.9% charge. This fee is paid to Siafund holders — Skynet owns approximately 85%.
SC coin price faces rejection from a crucial resistance level of $0.025. This projects the possibility of a downtrend if the price fails to sustain above the $0.013 support level.
On September 06, 2021, Siacoin opened at $0.024. On September 12, 2021, the price closed at $0.019. Thus, in the past week, the Siacoin price fell by approximately 22.50%.
Source - Tradingview
At the time of writing, the SC coin price is trading at $0.01806 with a decline of 4.36% in the past 24 hours. The growth in underlying bearishness projects the increased possibility of a downfall.
Source - Tradingview
The recent rejection from the $0.025 resistance results in the formation of the bearish engulfing candlestick. This may briefly cause a downfall with a follow-through.
In the daily chart, the SC token price consolidates below the $0.020 level that may soon give a decisive breakout. However, in the case of a bearish turn, the solid support level of $0.0080 might be able to reverse the trend. As the support level has been able to reverse the bearish attack twice in the last 3 months.
As per the price action, the coin price may find resistance near $0.025 and $0.030. And the support levels are at $0.010 and $0.0080.
The exponential moving averages of 50, 100, and 200-days move sideways as the price consolidates below the 50-day EMA and close to the 100-day EMA. The 200-day EMA might be able to provide the push to increase the bullish pressure.
Currently, the RSI indicator is resting at 46% as it projects a draw between bullish and bearish powers. The slope of RSI is moving sideways within the neutral zone. The breakout of RSI from the range of 50%-43% may decide the future trend.
As per Siacoin cryptocurrency’s technical analysis, the trend is bearish but may soon find demand near the crucial support levels that are in close proximity. Moreover, the ongoing accumulation phase may give a bullish breakout. Hence, investors might want to wait till a decisive trend is in action.