Filecoin [FIL] flips $6 level to support – bulls seek further gains
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
-The higher timeframe trend was bullish after the move above $5 in January.
-FIL formed a near-term rounded bottom around the $5.4 mark but has climbed higher since then, which could see a breakout past $6.5 soon.
Bitcoin [BTC] continued to hold on to the $30k mark at press time, but warning signs will flash for the bulls upon a BTC descent beneath $30k and $29.6k. This could pave the way for further losses. On the other hand, a move above $32k could see BTC and the rest of the market post enormous gains very quickly.
How much are 1,10,100 FILs worth today?
Filecoin [FIL] has been on an uptrend in 2023, and the breakout past the $5 and $5.65 levels in January was a crucial development. At the time of writing, the higher timeframe trend wasn’t strong, but the bulls had a slight edge on lower timeframes.
FIL formed a rounded bottom but might not be ready for a rally yet
A rounded bottom pattern was highlighted in blue. This came after the brief surge in prices to $7.58 on 14 March, which was followed by a sharp drop to $5.45. Thereafter, FIL traded slowly downward to reach the local lows at $5.2 before the bulls began to fight back.
At the time of writing, the lower timeframe market structure was bullish, and the $6 level was also turned from resistance to support. To the north, the next significant near-term resistances sat at $6.7, $7.3, and $7.58.
Over the past week, the 4-hour RSI has tested the neutral 50 mark as resistance and continued to move above it, showing an uptrend in progress. The higher lows and higher highs that FIL formed on lower timeframes also showed some bullishness. The CMF was at +0.07 to show a significant influx of capital into the market.
Filecoin bulls can expect some resistance in the $6.5-$6.7 region and look to book profits when the price enters this zone. A four-hour session close above $6.7 would be a strong sign of bullish intent.
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Selling pressure hasn’t abated but sentiment remained bullish
No, that statement doesn’t contradict itself because spot CVD is a less reliable indication of sentiment than Open Interest. The rising OI alongside FIL prices meant that bulls had the upper hand, despite the falling CVD. However, it opened the possibility that Filecoin could reverse its recent gains.
A look at the daily timeframe showed that the $6.44-$7.25 was a bearish order block on that timeframe, and has confluence with the lower timeframe resistance levels highlighted previously. Lower timeframe buyers can take heart in a move above $6.5, and a retest could offer a buying opportunity for them.