Filecoin’s Bullish Breakout Is Facing a Rejection

As the new year commences, the crypto market seems to be assuming a brighter outlook. As a result, the Filecoin token, as of today, has recorded over a 5.67% price increase and, as such, stands as the second most profitable coin as of the time of writing. Without wasting more time, let’s dive into the analysis of the coin’s price action below.

FIL Statistics:

Filecoin Price: $6.165

FIL Market Capitalization: $3.82B

Filecoin Circulating Supply: 619.37M

FIL Total Supply: 1.95B

Filecoin CoinMarketCap Rank: 42

Key Price Levels:

Resistance: $6.500, $8.500, $10.00

Support: $6.000, $5.000, $4.000

 

Filecoin Above $6.000 Threshold

The bullish pattern in the FIL daily market has eventually materialized but seems to be facing an imminent threat. The last price candle on the token’s daily price chart has appeared green and conspicuous, keeping prices above the $6.00 threshold. Meanwhile, signs of price movement coming under pressure are observable.

The mentioned price candle sits just above all the Moving Average (MA) lines while appearing green and with a conspicuous body. However, the price candle has a visible upper and lower shadow, which reveals that upward and downward price forces are in action in the session. Also, the Stochastic Relative Strength Index (RSI) indicator can already indicate an overbought condition. Although the lines of the indicator seem ready to drag at the 100 threshold, which may allow more price increases.

FIL’s Downward Retracement May be Short-lived

By extension of the Filecoin price analysis to the 4-hour chart, one can see that price action is also above all the MA lines as well. However, the last price candle here indicates that downward forces are leading. Nevertheless, the market remains above all the MA lines, and the mentioned price candle seems small.

Meanwhile, the Stochastic RSI lines can be seen converging for a bearish crossover quite sharply at such a minimal price decline, above the 80 level of the indicator. Now, with price action above all the MA lines, it is likely that we see a sharp reversal to that bearish deflection. As a result, price action still seems tipped for a retracement of higher price levels at the $6.500 and subsequently the $7.000 mark.

Start using a world-class auto trading solution.