- Filecoin price has formed a bear flag on the 4-hour chart.
- The digital asset must stay above a crucial support level to avoid a 20% drop.
- The long term view remains heavily bullish for Filecoin.
Filecoin had a major drop in the last three days but has managed to stay above several crucial support levels.
Filecoin price must defend key support level
On the 4-hour chart, Filecoin price has formed a bear flag which could see a breakdown at any point. A 4-hour candlestick close below $150 would confirm it and has a 20% price target down to $120.
FIL/USD 4-hour chart
Considering the recent downtrend, this seems like a fairly likely scenario and would invalidate the bull flag formed on the daily chart since months ago.
To confirm a breakout from the daily bull flag, FIL must see a daily candlestick close above $185. This pattern has a long term price target of $300.
FIL/USD daily chart
However, the digital asset will pause at $200 at the 78.6% Fibonacci retracement level and the previous high of $238.
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.