Filecoin – This is where FIL bulls can re-enter
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- The $4.25 immediate support remained steady after the Fed’s decision.
- Open Interest and buying volumes steadied, hinting at a likely price pivot.
Filecoin [FIL] has been faltering near the familiar roadblock below $5, offering shorting opportunities. Similarly, the immediate support of $4.25 has remained steady in the past few days, offering bulls a chance to recover.
Read Filecoin’s [FIL] Price Prediction 2023-24
Are bulls late to the party?
FIL had already bounced from the $4.25 support at the time of writing. However, Bitcoin [BTC] was yet to reclaim the previous range-low of $29.5k. If the king coin fails to reclaim the range-low, FIL could retreat and retest the $4.25 support again.
Besides, the trendline support (white continuous line) has proven steady since mid-June. So, late bulls could wait for a retest of the ascending trendline support or the $4.25 for re-entry, targeting the D1 bearish order block of $4.8 – $5.0.
A breach below the ascending trendline support will invalidate the above bullish thesis, especially if BTC registers more losses below $29k. Such a downswing could set FIL to devalue towards $4.15 or $3.5.
A look at the indicators suggested a possible resistance to the mild rally seen at the time of writing. The Relative Strenth Index (RSI) and Chaikin Money Flow (CMF) were approaching neutral levels. In particular, the RSI could falter at the mid-level before climbing above it, reinforcing the idea of another likely retest of $4.25.
Open Interest and buying volumes steadied
FIL’s Open Interest (OI) remained steady during and after the FOMC meeting, suggesting speculators retreated to watch the action from the sidelines.
How much are 1,10,100 FILs worth today?
Similarly, the buying volumes, denoted by the Cumulative Volume Delta (CVD), moved sideways after declining in the past few days. The metrics hint at a likely price pivot, but tracking BTC price action could clarify the likelihood of such an event.