Filecoin [FIL] could ensure another 20% hike, if Bitcoin [BTC]….
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- Two obstacles block FIL’s path to its pre-FTX levels.
- FIL’s development activity fell, but the Funding Rate remained positive.
Filecoin [FIL] rally in January offered investors over 90% gains after rising from $2.992 to a high of $5.788. But it was still two obstacles from its pre-FTX level of $6.348. At press time, FIL’s value was $5.288, flickered red after Bitcoin [BTC] lost hold of the $23K zone.
Read Filecoin [FIL] Price Prediction 2023-24
Selling pressure and the $6.016 hurdles: Can bulls clear them?
FIL got into an extended price consolidation between mid-November and mid-December 2022 after a massive drop following the FTX saga.
It fell from $6.554 to $2.433, shedding over 60% of its value. But the $2.906 support level was steady enough for bulls to launch recovery from.
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FIL’s uptrend momentum in January has seen investors recover most of the losses after the FTX saga. But a short-term selling pressure zone ( $5.679 – $5.790) and $6.016 hurdles prevented full recovery to the pre-FTX level of $6.348.
FIL could overcome these two obstacles if BTC recovers and surges above the $23.5K zone.
However, a break below $5.182 and the uptrend line would invalidate the bullish bias described above. Such a drop could settle at the $4.983 support level.
FIL’s development activity tanked, but demand remained steady
According to Santiment, FIL’s development activity declined gradually and affected investors’ outlook on the asset, as shown by the drop in positive weighted sentiment. The extended decline could undermine the needed momentum to overcome the two obstacles.
However, FIL’s Funding Rate remained positive, suggesting an underlying bullish outlook on the asset. Further demand for FIL in the derivatives market could bolster the uptrend momentum and inflict a price reversal.
In addition, there was an uptick in FIL’s trading volume after a sharp decline. But the uptick was yet to bolster buying pressure by press time. Therefore, investors should track BTC performance, especially on the $23.5K and $22.5K levels.