Filecoin price action is not enjoying the first week of November

Filecoin (FIL) price saw a jump of nearly 7% last week in just one trading day, which drew in a massive inflow of traders trying to be part of the rally. Big was the disappointment the next reading day when the whole move simply reversed, and currently FIL is pointing to more downward pressure. The sell-the-rally trading plan is still in play and does not look to end soon unless the Fed comes up with a sudden game-changer in the game's last quarter.

FIL price action relies on the Fed

Filecoin price action has been on the back foot for the second day in a row after the bullish breakout from last week, where bulls were able to print a near 7% gain intraday on Saturday. Unfortunately, the aspirations of an extended rally were cut short the day after as a full paring back of the gains occurred. Since then, the 55-day Simple Moving Average has subdued price action and acted as a thumb squashing a fly against the table with $5.31 as a base. 

FIL price action already broke through that mentioned $3.31 level this morning and looks to be dangling now above the abyss. The future relies on Fed wording this evening. Should Powell refrain from mentioning any timing on a slowdown of monetary tightening, expect to see a drop lower that would scare bulls away with a test at $4.72 due.

FIL/USD daily chart

Moves to the upside are, of course, still possible and would come on the back of rather positive signals from the Fed. That would mean that Powell mentions the central bank sees significant slowdowns in inflation and employment, foreshadowing a slowdown in demand. This would be exactly what the Fed was targeting and what it wanted to accomplish. Markets would see this as the bottom of this downtrend being reached and see an extensive rally first toward $6 and next to $6.98, at the high from June 7.