Sunday, July 14, 2024

Is Filecoin’s price ready for a bullish breakout? Analyst claims….

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  • Filecoin’s price dropped sharply, before rebounding, showing signs of recovery amidst market volatility
  • Significant trading volume and OIs highlighted ongoing investor interest in Filecoin

Over the past week, Filecoin (FIL) has seen considerable volatility in its price movements. In fact, the altcoin’s price declined sharply from around $4.20 to below $3.40 by 5 July. This decline was followed by a recovery phase, one where the price climbed back to approximately $4.00 on 7 July.

At the time of writing, Filecoin was priced at $3.92, on the back of a 1.7% hike over the previous trading period. The price has fluctuated within a 24-hour range of $3.84 to $3.98, indicating a relatively stable yet slightly upward trend in the short term. These modest gains were recorded amidst varying market conditions and investor sentiment.

Market activity and investor interest

Filecoin’s press time trading volume over the last 24 hours stood at $102,563,467, suggesting a healthy level of market activity. Its market capitalization was as high as $2,225,402,277 too, positioning it as a notable player in the cryptocurrency market. What does this mean for FIL’s price action in the short term though? Is it time buyers finally dive into the altcoin’s market. 

Ali, a market analyst on X, had something to say about this, observing

“The TD Sequential presents a buy signal on the #Filecoin $FIL 3-day chart, anticipating a rebound of one to four candlesticks.”

Simply put, a potentially bullish trend can be seen in the near term.

Source: X

Filecoin technical analysis and support levels

The altcoin’s TA identified significant resistance levels near $11.87 and around the $7.00-$7.20 range, with the same aligning with the Fibonacci retracement levels. A support level was seen at $3.77 too, which the price recently tested and rebounded from, forming a bullish candlestick pattern. Additional support seemed to be around $4.00, correlating with the 0.236 Fibonacci retracement level.

The Relative Strength Index (RSI) had a reading of 39.19, below the neutral 50 – Well inside bearish territory. On the contrary, it also underlined signs of upward movement on the back of growing buying momentum.

Volume analysis also indicated significant buying interest around the $3.77 support level, as marked by green arrows on the chart.

Source: FIL/USD, TradingView

Finally, according to Coinglass, there were minimal short liquidations at $59.2K and long liquidations at $279.11K, suggesting a lower level of liquidation activity for the day. FIL’s Futures Open Interest recorded figures of around $130 million too, reflecting the total value of outstanding Futures contracts for Filecoin.

Source: Coinglass

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