Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- FIL eased closer to the $3.1 support level.
- There was more liquidity on the upside, which could induce a rebound.
Filecoin [FIL] defended the $3.0 psychological level since August. Previous retests allowed FIL buyers to seek gains at the overhead roadblock at $3.4. However, a recent retest didn’t lead to expected profits as a solid bullish reversal remained elusive.
Read Filecoin’s [FIL] Price Prediction 2023-24
Can near-term bulls benefit from this support?
Source: FIL/USDT on TradingView
Despite the elusive bullish reversal, near-term bulls exploited the slight price bounce. The $3.2 was the immediate resistance. The next resistance was the H12 bearish order block (OB) of $3.36 – $3.489 (white) formed on 23 August.
The $3.0 support and bullish order block (cyan) were crucial in the higher timeframe. A slight price bounce from the level to $3.2 could provide modest gains.
However, a drop below $3.0 will invalidate the bullish bias. Notably, demand for the altcoin dropped in the Spot market as indicated by declining On-Balance Volume (OBV). Besides, the selling pressure was still present, as shown by the downsloping RSI.
Hence, the bullish idea was a risky set-up, and tracking BTC could help with risk mitigation and set-up optimization.
Will liquidity hunt push Filecoin up?
Source: Hyblock Capital
According to Hyblock Capital’s Liquidation Levels, liquidity was on the upside, as shown by more lines on the upside on the Liquidation Profile.
How much are 1,10,100 FILs worth today?
It meant that more medium and higher liquidation levels existed above the current price level. So, a likely liquidity hunt could push FILs higher in the areas. The larger bubbles (higher liquidation levels) existed at $3.20, $3.25, and $3.28.
In addition, the Cumulative Liquidation Levels Delta has been negative since 17 October. It implied that there was more liquidation of short positions than long positions – A bullish bias.
However, an extended drop below the $3.0 psychological level will invalidate the bullish idea.
