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Filecoin’s consolidation persists- Here are the key levels to look out for 

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Filecoin's consolidation persists- Here are the key levels to look out for 

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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. 


Is your portfolio green? Check FIL Profit Calculator


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.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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