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Filecoin [FIL] could breakout if BTC traverses this path, more inside

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Filecoin [FIL] could breakout if BTC traverses this path, more inside

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • FIL consolidated in a narrow range.
  • A declining open interest rate and the long/short ratio could give sellers more hope. 

Since the end of March, Filecoin [FIL] has been consolidating in a narrow range of $5.345 – $6.000. The range trading followed Bitcoin’s [BTC] lead. BTC has been consolidating between $26.8k and $28.8k. 

BTC’s failure to break above $30k has attracted some short pullbacks across several altcoins, FIL included. This shows traders were not vacating their positions as they expected an upswing. 

Read Filecoin’s [FIL] Price Prediction 2023-24

Will consolidation persist, or is a retracement likely?

Source: FIL/USDT on TradingView

On the daily chart, the 200-day MA (Moving Average) and 20-day EMA (exponential moving average) were moving parallel and chalked straight lines – suggesting a likely extended consolidation in the short and mid-term. 

In addition, the RSI fluctuated near the equilibrium level, as did the OBV (On Balance Volume). Moreover, the Average Directional Index (ADX) declined further, reinforcing a likely retracement or consolidation. 

As such, FIL could attempt to retest the range lower boundary of $5.345 if sellers clear the hurdles at the mid-level of $5.657 and the ascending trendline (white). A further drop below the parallel channel (orange) could slow at the 200-day MA (blue line). 

But a bullish breakout above $6.000 may occur if BTC reclaims $29k and surges into the $30k zone. The immediate bullish targets for such an upswing are $6.50 and $7.26.

Open interest rates dipped

Source: Coinglass

How much are 1,10,100 FILs worth today?

According to Coinglass, the exchange FIL long/short ratio in the 12-hour frame showed sellers had the upper hand. It suggested a bearish outlook for the asset in the mid-term, which could tip sellers to overcome the mid-range level of $5.657 and ascending line.

In addition, the open interest rate has declined slightly since 8 April, indicating a significant outflow of money from FIL’s futures market – capturing the underlying bearish sentiment. However, investors should track BTC’s price action before making moves. 

Source: Coinglass


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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