Connect with us
Active Currencies 14044
Market Cap $2,564,844,279,946.75
Bitcoin Share 50.76%
24h Market Cap Change $0.19

Filecoin sinks 26% in 7 days – Time to stock up on FIL?

2min Read

The dip provides an opportunity for traders to accumulate FIL.

Filecoin flashes buy signal

Share this article

  • A well-known technical analyst spotted a buy signal on the charts.
  • Short positions were increasing their dominance, implying bearish sentiment.

Filecoin [FIL], like the broader altcoin market, bled profusely over the past week.

The token, which represents the decentralized storage network, shed 26% of its value in the last seven days, becoming one of the biggest losers in the market, according to CoinMarketCap. FIL was exchanging hands at $8.19 at press time.

The price slump resulted in increased pessimism about the coin, as per AMBCrypto’s examination of Santiment’s weighted sentiment indicator.

Filecoin investor sentiment

Source: Santiment

While not the ideal situation for FIL traders, it did provide an opportunity for accumulation.

Will you still buy Filecoin?

Prominent on-chain analyst Ali Martinez took to social platform X to highlight a buy signal flashed by FIL’s TD Sequential indicator. “If FIL can close above the 50-day EMA, we could see a one to four daily candlesticks upswing,” Martinez predicted.

AMBCrypto glanced through some of FIL’s other key technical indicators to make a sense of the above argument.

On a daily chart, the Relative Strength Index (RSI) continued to move below the neutral 50 level. Typically, the 40-50 level acts as a good support level during an uptrend, raising hopes of an upward breakout in the days ahead. A dip below 40 however, could nullify this narrative and strengthen the bears.

The On Balance Volume (OBV) largely mimicked the price trend. In the last few days, the trend of lower peaks and lower troughs was snapped, giving hopes of a breakout to the north.

Filecoin price analysis

Source: Trading View

How much are 1,10,100 FILs worth today?

Traders reduce long exposure

Meanwhile, FIL’s derivatives market presented an interesting picture. According to AMBCrypto’s analysis of Coinglass’ data, the funding rate was positive, implying a broader bullish statement.

However, the declining trend in the last few weeks suggested increasing dominance of short positions, and therefore expectation of bearish conditions in the days ahead.

Filecoin funding rate shows growing dominance of shorts

Source: Coinglass


Aniket Verma works as a journalist at AMBCrypto. Contrary to most who are primarily interested in merely tracking price movements of cryptos, his focus is on examining the niche intersection between cryptocurrencies and traditional finance. A so-so Bitcoin maximalist, Aniket has a strong disdain for memecoins and the unfounded frenzy they seem to generate every market season. Coming from a strong engineering background, Aniket previously worked as a Content Manager for TV9 Network. Before his stint over there, he was an Associate Multimedia News Producer at Reuters.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.