Aaryamann Shrivastava
FXStreet
- Filecoin price increased by almost 8% to trade at $6.96.
- Mixed indications from the price indicators suggest FIL might end up moving sideways for a while.
- A breach above $9.78 could potentially invalidate the bearish thesis.
Filecoin price was among the few coins to continue its uptrend well into February, with the uptrend beginning to cool down just a few days ago. The altcoin is currently suffering the brunt of the recovering market as investors are acting cautiously, looking for a bullish or bearish signals. If Wednesday’s rally turns out to be a bullish signal, investors could be looking at a good few days.
What if Filecoin price does not act bullish, though?
Trading at $6.95, Filecoin price rose by more than 7.4% at the time of writing, rising above the immediate support level of $6.59. Although whether or not this rise could push the price to a seven-month high is uncertain since no clear indication can be seen on the charts.
The Parabolic Stop and Reverse (SAR) highlights an active downtrend, thanks to the presence of the blue dots of indicator above the candlesticks. The Relative Strength Index (RSI), on the other hand, is still bullish as the indicator bounced off the neutral line at 50.0, suggesting a minor bounce in price is likely.
However, the Moving Average Convergence Divergence (MACD) indicator is bearish as well, with the cryptocurrency experiencing a bearish crossover a few days ago. The signal line (red) crossing over the MACD line (blue) is evidence of the same.
Filecoin MACD and RSI
Thus if the bearish scenario plays out, Filecoin price could end up losing the support at $6.59 and slipping to test the critical support at $4.79. Marking a 30% crash, FIL, from here on, would be vulnerable to a decline below $4.00 if it loses this support level as well.
Although the presence of the 50 and 100-day Exponential Moving Averages (EMAs) could act as support for Filecoin price. Bouncing off of these could push the price back up, and support from buyers could carry FIL above $7.87.
FIL/USD 1-day chart
Flipping it into support would enable the altcoin to rise to $9.78 and test the critical resistance. A daily candlestick close above this level would invalidate the bearish thesis, pushing the price above $9.78.
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.
Recommended Content
Editors’ Picks
Crypto traders brace for short-term volatility with $2.4 billion options expiry on Friday
Bitcoin and Ethereum options market looks bullish on Friday, according to data from intelligence tracker Greeks.live. The firm said it has identified two Bitcoin calls that show an underlying bullish sentiment among market participants.
XRP recovers from week-long decline following Ripple’s response to SEC motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.
Lido adds 4% gains as protocol rolls out first step towards decentralization
Lido takes the first batch of simple DVT validators to live, a step taken to decentralize the protocol. Lido leveraged technology to expand the protocol to multiple node operators, inviting both solo and community stakers.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.