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- Filecoin token manages to sustain above the 200 Moving Average on the daily frame
- The current price of FIL is $67.93 established on the back of a 3.95% increase in the last 24 hours
- In the contrast, the FIL/BTC is trailing at 0.001915 BTC with a gain of 0.66% at press time
FIL token has been traveling in a downtrend from the moment it established an ATH of $238 back in April. The efforts of the bulls to hold the price above the macro support trend line suggest that the bears haven’t entirely ruptured the momentum.
While the 200 MA has been consistently serving as prolonged support to FIL, the breach of this moving average will further lead to a substantial drop in price.
The daily Stochastic RSI is on the verge of transpiring a bearish crossover after two weeks. In addition to it, the RSI has paired up with the price action to demonstrate hidden bearish divergence. The success of either of these indicators will expose FIL to the nearest support levels of $61 and $53 respectively.
A reversal is only plausible under the condition that FIL stays clear of the 200 EMA which is currently thriving as critical resistance to the token. The incompetence of the token to do so will hold the 20 EMA accountable for emerging a death cross.
Filecoin trading inside the descending parallel channel on the 4-hour chart
The 4-hour chart brings attention to the fact that FIL is restricted inside a bearish continuation pattern known as the Descending parallel channel.
The price action is maintaining its bearish streak inside the bottom channel and is about to approach halfway. However, the minute size of the candlesticks is suggesting exhaustion in momentum.
Inside the bearish channel, there exists an ascending triangle. A breakout from this pattern is most likely to get restricted by the resistance at $74.
The current price of FIL is at a bargain of 20% from the bearish FIB 0.0236 FIB retracement. A break above the resistance of $74 will stimulate the price to test that particular level and guarantee an upswing.
The Moving Average Convergence Divergence (Bullish) had entertained a bullish crossover as evidenced by the accelerating histogram at press time.
The Relative Strength Index (neutral) is projecting a no tend after gradually entering the equilibrium territory. Considering the fact that the trend is currently hovering in the range of 48, a reversal will forecast another oversold scenario.
CONCLUSION: At present, the entire Crypto market is perpetuated with panic among investors. FIL alone has eradicated 70% of its value in a short span. On zooming to a higher time frame, It appears that the token is in wave two of the Elliot wave pattern.
Investments in altcoins are subjected to market risks and Bitcoin Dominance. Investors should conduct due diligence before investing.
SUPPORT: $61, $53
RESISTANCE: $74