Filecoin finds recovery elusive after hitting long-term support
FIL was stuck between a long-term support zone near $3.0 and an overhead hurdle near $3.8.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- FIL retested a key support zone, but there was no solid recovery.
- Sellers had more market control despite improved Open Interest.
Filecoin [FIL] has stayed below $4 since mid-August. Reclaiming the level could be a challenge in the mid-term due to uncertainty around Bitcoin [BTC].
Read Filecoin’s [FIL] Price Prediction 2023-24
Despite BTC’s sharp losses in August, it managed to have daily and weekly sessions close above $26k. It suggests that bulls were out to defend the $26k level, but further losses couldn’t be overruled.
What’s next for FIL’s price action?
The H12 chart’s Chaikin Money Flow (CMF) has improved and exceeded the zero level in August. But it fluctuated above the threshold in the last few days, showing that capital inflows improved but wavered afterwards.
Over the same period, the Relative Strength Index was stuck in the oversold zone. However, it attempted to escape the oversold area at press time, denoting selling pressure still loomed.
The long-term support and demand zone, marked by cyan, doubled as a weekly bullish order block (OB) of $2.68 – $3.12. Previous retests on the support in January and June led to a strong FIL rebound.
A similar retest in August is yet to see the same positive reaction as BTC uncertainty persists. The next resistance level lies at $3.8 and $4.25.
But an extra drop below the weekly bullish OB of $2.68 – $3.12 (cyan) could ease at $2.42.
Sellers still had market control
According to Coinalyze, the CVD (Cumulative Volume Delta) has declined since mid-August, reinforcing sellers’ leverage and market control.
How much are 1,10,100 FILs worth today?
Despite sellers’ control, the Open Interest (OI) surged from 22 August, jumping from $59 million to around $69 million at the time of writing.
The trend captures improving demand, but the area near $3.8 could undermine further upside for FIL if a weak BTC persists.
