Filecoin [FIL] hits a familiar roadblock – Bulls can re-enter here
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- FIL hit a bearish OB on the daily chart below $5.
- Open Interest rates steadied; buying volumes declined.
Filecoin [FIL] has forayed into familiar territory, and a repeat of a previous trend could force near-term bulls to exercise patience. Since mid-June, FIL has made higher lows with the same highs, chalking an ascending triangle pattern. The likely price constriction points to a likely breakout for FIL.
Is your portfolio green? Check out the FIL Profit Calculator
Meanwhile, Bitcoin [BTC] graced a new high on 13 July but eased at the time of writing, threatening to drop below $30k. However, bulls have defended the $30k for a while and could come through again.
Will bulls succumb to this roadblock?
From the chart technical indicators’ point of view, a price pivot was likely. The Relative Strength Index (RSI) and On Balance Volume (OBV) registered downticks, suggesting that buying pressure and demand eased slightly.
On the price chart, the four-hour showed that FIL was in familiar territory – a bearish order block (OB) of $4.74 – $5.20 (red) on the daily chart (D1). FIL was rejected at the bearish OB in early July, dragging it to the ascending trendline support (white).
If the trend repeats, FIL could drop to the ascending trendline support. In addition, a price imbalance, the Fair Value Gap (FVG) of $4.28 – $4.43 (white), borders the trendline support. So, the confluence area could be a crucial bullish zone.
A positive price reaction at the above bullish zone could set FIL to retest the bearish OB of $4.74 – $5.20 and offer a good risk-reward ratio.
A breach below the ascending trendline support will invalidate the bullish thesis.
Open Interest rates steadied, but …
On Coinalyze’s one-hour chart, the Open Interest (OI) rates jumped from $80 million to $90 million during the massive price pump in the past few hours. However, the OI steadied around $90 million, showing demand steadied after FIL hit the roadblock below $5.0.
How much are 1,10,100 FILs worth today?
Similarly, the Cumulative Volume Delta (CVD) treaded southwards, reinforcing that buying volumes eased significantly as sellers gained leverage at the roadblock. If the trend persists, bulls can seek re-entry at the confluence area of FVG and ascending trendline support.