- Filecoin has a powerful bullish bias on the each day chart.
- The opportunity of a reversal and vary formation was current.
Filecoin [FIL] noticed a stellar efficiency previously three weeks. It retested the upper timeframe assist zone on the $4.6-$5.6 space and rallied 76% because the fifth of February to achieve $8.57. It appeared possible {that a} transfer towards $9.5 is on the playing cards.
But, the dwindling shopping for strain on the decrease timeframes was regarding. Has Filecoin run out of steam? Right here’s how merchants may navigate the approaching weeks.
The 100% extension stage was examined as soon as extra
After the $3.5 assist zone was retested in late October 2023, the worth rallied to $5.66. This transfer was used to plot a set of Fibonacci retracement ranges (pale yellow).
It confirmed that the 100% and 200% extension ranges have been at $7.81 and $9.96. Aside from that, the $6.2-$6.5 space was vital as effectively.
Moreover, on the weekly chart, the $4.6-$5.6 bearish order block was flipped to a bullish breaker and highlighted in cyan. As talked about earlier, this space was additionally retested in early February earlier than the large rally ensued.
The OBV has trended strongly increased and indicated consumers have been dominant. The RSI was at 76, highlighting the power of the momentum on the each day chart. Taken collectively, it was possible {that a} transfer to $10 was imminent.
But, the zone above the $8 excessive from January is probably going full of promote orders. Holders from decrease ranges would possible be planning on reserving earnings. Subsequently, a reversal from the $8-$8.5 zone was additionally a risk that merchants ought to be ready for.
The previous 4 days noticed the bullish sentiment weaken
Since twentieth February, the Open Curiosity has remained close to the $300 million mark. It waxed and waned alongside the worth however made no new highs. The inference was that capital move into the futures market had begun to decelerate.
How a lot are 1, 10, or 100 FIL value right this moment?
The spot CVD started to development downward previously 4 days, exhibiting promoting quantity has elevated within the short-term. But, the funding fee remained optimistic.
Within the occasion FIL experiences promoting strain, $7 and the $6.2-$6.5 area are anticipated to function demand zones.
Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.