- Filecoin price is consolidating inside a range between $50 and $66.55.
- FIL is struggling to generate significant price action as buyers and sellers are in equilibrium.
- The coin signals a bearish trend but no sign of any significant momentum.
Filecoin price recovery has stalled as a bearish trend is likely to continue, with momentum continuing to slow down but a bearish wedge pattern being shaped despite the recent range trading..
Filecoin price wedge pattern causes another worry
Filecoin price has failed to sustain moves above the $66.55 resistance zone on Thursday, as sideways trading continues. The cryptocurrency was trading around $56.51 at the time of writing, with intraday losses of -$2.86, and the consolidation appears to continue.
While the volume-to-market cap ratio stands at 0.1941, with a 24-hours volume of $1,001,278,184.35, FIL is ranked the 24th biggest cryptocurrency with a total market capitalization of $4,689,090,848, down by -5.90%, according to Coinmarketcap.com.
Filecoin is drawing a bearish wedge pattern that shows a correction phase within several downward trends. Although the recent price action shows higher highs and higher lows for the last ten days, buyers have not been able to get the upward trend to work, with $66.50 swing high creating a meaningful resistance area. The long-term bearish trend is likely to continue as the price fails to make a new high.
The short-term price action shows Filecoin price is in a consolidation phase.
Since June 11, FIL has been trading sideways on the 4-hour chart, showing consolidation between support and resistance levels standing at $50.17 and $66.55, respectively.
FIL price has plunged by over 72% from its all-time high. The 50-day and 200-day moving averages show that the cryptocurrency has developed a death cross, and this signals a continuation of the bear market.
FIL/USDt 4-hour chart
On the flip side, the small size of the candlesticks shows that the prevailing trend could come to an end, owing to the increasingly balanced strength ratio between the sellers and buyers. Therefore, there is some uncertainty about the direction of the next price movement of Filecoin cryptocurrency.
Although the MACD has been below the neutral line since June 11, the two moving average lines on the chart crossed the 0-level on June 27, and this signals an upward trend is likely to emerge. But the two MACD lines appear to have converged above the 0-level, which indicates a slowdown of the recent FIL rally.
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.