Filecoin Price Prediction: FIL poised for a pullback down to $28 before the next leg up
- Filecoin price is up 40% in the past two days, breaking several resistance levels.
- The digital asset still faces a critical barrier at $34 and might be poised for a correction soon.
- FIL bulls must push the digital asset above $34 to see another leg up.
Filecoin had an amazing trading start back in October, reaching $100, but quickly plummeted down to $23 and never managed to fully recover. The digital asset has been on a tear recently, rallying to almost $34, but is currently facing a lot of selling pressure in the short-term and could see a pullback down to $28.
Filecoin at risk of a massive rejection from critical level
Filecoin price has gotten rejected from a crucial barrier at $34 which has been in place since almost the foundation of the asset. On the 4-hour chart, the TD Sequential indicator has presented a sell signal right after the current rejection, adding even more selling pressure.
FIL/USD 4-hour chart
On the daily chart, Filecoin price stopped at $33.9 and can quickly fall towards $30.5 which is the 78.6% Fibonacci retracement level. The next potential price target is $28, which is the 61.8% level.
FIL/USD daily chart
However, a clear breakout above $34 would invalidate the bearish outlook as this resistance barrier is significant. FIL bulls can drive the price up to $40.89 which is the high set on October 26, 2020.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
