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The Filecoin ($FIL) price could be nearing the end of its short-term correction, after which a considerable bounce will follow.
The Filecoin price has fallen under a long-term descending resistance line since its $237.73 all-time high in March 2021. The decrease led to a minimum price of $2.37 in December 2022. The price has increased since.
More importantly, the $FIL token managed to reclaim the $5.55 support area. This was a crucial development since it rendered the previous breakdown as illegitimate. Moreover, the $5.55 area is expected to provide support again.
However, despite this reclaim, the $FIL coin price failed to break out from the resistance line (red icon). The trend cannot be considered bullish until it does.
If $FIL breaks out, it could increase to the next resistance at an average price of $25. However, if a breakdown from the $5.55 area occurs, a drop toward $2 could follow.
The weekly RSI has generated bullish divergence (green line), and is above 50. Therefore, it supports the possibility of a breakout.
Filecoin ($FIL) Price Prediction for March: Relief Rally Right Around the Corner
While the technical analysis from the weekly time frame gives an undetermined trend, the daily chart suggests that the $FIL price will soon begin a relief rally. This is because the price has completed a five-wave upward movement on Feb. 17 and has been retracing since, without experiencing a bounce.
So, it is likely that it is nearing the bottom of the corrective wave A. Afterward, a relief rally as part of wave B will occur, followed by another drop toward the 0.618 Fib retracement support level at $5.17. Even though only a decrease below the wave one low at $2.41 would completely invalidate this count, a fall below the sub-wave four low (red line) at $4.61 would put it at serious risk.
To conclude, the most likely Filecoin price prediction for March is a significant relief rally toward $9 followed by another drop to $5.17. A close below $4.61 would put this bullish Filecoin price forecast at risk and could be the catalyst for a sharp fall.