Filecoin price jumps 14% – Why FIL’s rally still hinges on $0.86
Filecoin has rallied nearly 20% from Monday's open, and appeared ready to challenge the bearish swing structure.
Filecoin [FIL] was up 13.6% in the past 24 hours, at press time, and gained nearly 20% from its recent low at $0.66. The daily trading volume has surged to $255 million, a 366% increase from the previous trading day, according to CoinMarketCap data.
Bitcoin [BTC] has been hovering around the $78k mark. Its consolidation phase has likely resulted in capital rotation into altcoins, helping explain FIL’s price uptick.
The liquidation heatmap showed how the overhead clusters of short liquidations from $0.70 to $0.80 did little to halt the bulls. The aggressive rally meant these cascading short liquidations further fueled the price move higher.
Currently, there is a cluster of liquidity building around $0.816. The $0.866 level is another one to monitor. Have the bulls got what it takes to breach these two areas?
The importance of FIL’s higher low
On the 17th of June, FIL reached a high of $0.833. By August, the price had slumped to a new swing low of $0.61, sparking a bounce to $0.866.
The bulls were unable to force a daily session close above $0.833 to break the swing structure bullishly. Therefore, despite the strong trading volume and gains of the past few days, the overall price structure remained bearish.
The OBV was attempting to make new highs compared to the past three months. The MACD was laboring hard to push its way back above the neutral zero line to indicate bullish momentum.
There was one encouraging aspect to the Filecoin price action. The bullish reaction from $0.65 could pave the way for a breakout to the upside.
Why Filecoin traders must watch these extension levels
The 4-hour chart has a bullish swing structure. The retracement from $0.866 halted at the 78.6% Fibonacci retracement level at $0.66. The bullish reaction from this level affirmed demand and a short-term buyer-driven market.
While the price action and technical indicators show strong buyers, the $0.866 high is the one to watch.
Final Summary
- Filecoin has rallied nearly 20% from Monday’s open, and appears ready to challenge the bearish swing structure.
- A breakout past $0.866 would be confirmation of a higher timeframe trend shift. Until then, swing traders can be aggressive when taking profits.
