Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- FIL’s price consolidation seemed far from over based on a key price chart indicator.
- Development activity and weighted sentiment fell.
Filecoin [FIL] has been under price consolidation since 20 March, oscillating between $5.345 and $5.930. Similarly, Bitcoin [BTC] traded within the $26.8K – $28.8K range.
If BTC’s sideways structure persists, FIL’s price consolidation could extend. However, FIL could take a cue from BTC if it inflicts a patterned breakout.
Read Filecoin [FIL] Price Prediction 2023-24
Key range boundary levels
Source: FIL/USDT on TradingView
At the time of writing, the RSI (Relative Strength Index) fluctuated below the 50 mark since 20 March, showing limited buying pressure. Similarly, the accumulation/distribution indicator fluctuated in the same period, indicating equal buying and selling pressure that set FIL into a sideways structure.
In addition, the 200 EMA (yellow line) formed a straight line in the past few days, suggesting a likely extension of the mid/long-term consolidation phase. As such, FIL could continue to oscillate between $5.345 and $5.930, and investors could continue to target the range boundaries for gains.
A close below the channel’s mid-level of $5.635 could push FIL toward the lower boundary of $5.345, especially if BTC drops below $28K. But a surge above the bearish order block of $5.800 will invalidate the bearish thesis.
In an upswing scenario, FIL could retest or break above the range upper boundary of $5.930, especially if BTC reclaims the $29K level. In addition, a bullish breakout could tip bulls to target $6.5.
Development activity and sentiment declined
Source: Santiment
According to Santiment, FIL’s development activity has declined since mid-March. The weighted sentiment followed suit, as investors’ confidence tanked following reduced building on the network.
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Nevertheless, the funding rate remained predominantly positive in the same period – which could underly the current bullish sentiment across the crypto sector as investors remain hopeful of a potential BTC bull run. Well, investors should track BTC price action for better moves.
