Filecoin [FIL] rejected at $6.5; investors can seek gains at these levels
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- FIL was neutral at press time.
- Development activity improved slightly; the funding rate remained positive.
Filecoin [FIL] weekly and daily charts were red at press time. On the weekly front, FIL lost over 3%, and the depreciation increased in the past 24 hours – shrinking by over 7%.
At press time, FIL broke below a key confluence support area near $6 and the 200-MA (Moving Average) of $5.728, reinforcing increasing sellers’ influence in the market.
Read Filecoin [FIL] Price Prediction 2023-24
Meanwhile, Bitcoin [BTC] oscillated between $29.2k – $31k and faced elevated short-term selling pressure. If the selling pressure persists, FIL could drop to lower support levels and offer more buying opportunities.
More price dump or a rebound for FIL?
A key support area of $6.0, a former range’s upper boundary lined up with 50-EMA (Exponential Moving Average), was breached at press time.
Similarly, bears retested the range’s mid-level of $5.636, sinking FIL below the long-term trend of 200-MA. It shows sellers gained more market influence and subdued bulls.
Any extended downtrend below the range’s mid-point of $5.636 could slow at the range’s lower boundary of $5.33. The $5.33 could offer an ideal buying opportunity, especially if FIL rebounds and retest the range’s boundary of $5.92 or the recent price ceiling of $6.445.
In the event of an extreme drop and breakout below the channel, the $5.00 could check the downtrend.
A close above the $6.445 price ceiling will show bulls have gained market influence. Such an upswing could tip FIL to zoom into the $7 psychological level, with immediate targets at $7.00 and $7.50.
Notably, the RSI and OBV had downticks – a dip in buying pressure and demand, respectively. But the stochastic RSI had hit the oversold zone, indicating a likely price reversal was imminent.
Development activity and sentiment improved
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FIL’s development activity hit rock bottom around 13 April but improved afterward. Similarly, weighted sentiment declined but later improved as development activity recovered. However, the sentiment remained negative – a bearish outlook.
On the other hand, the funding rate was still positive, at the time of writing, which could offer bulls slight hope. But investors should track BTC’s price action for more optimized trade set-ups.