Filecoin (FIL) prices have taken a hit recently, falling approximately 8% in the past 24 hours as it hovered around $4.6 on Friday afternoon. This dip follows the struggles observed in the Bitcoin (BTC) market, raising concerns about the altcoin’s performance.
FIL Price Outlook – Will Bulls Hold onto Gains?
Although there is a possibility of a rebound from the $4.2 price level, the technical outlook indicates the potential for a downturn to lower buffer zones. The recent 8% decline in FIL’s value in the past 24 hours reinforces this observation, especially if there is a failure among major digital assets like Bitcoin and Ethereum to reverse the current downward trend.
The charts show signs of uncertainty, with the daily RSI and MACD indicators signaling weakness, pointing towards a bearish sentiment. In a bearish scenario, Filecoin could tumble to the $3.9 support line, potentially pushing FIL/USD down to the critical demand reload zone between $3.1 and $2.7. However, a 19% decrease in daily trading volume suggests a potential shift in selling pressure. Consequently, if the opposite setup materializes, FIL may bounce back from the $4.2-$4.4 area to reclaim $5.0 as support, setting the stage for a move to the recent six-month peak above $5.6 and potentially allowing bulls to target $6.5.
What has caused the dip in Filecoin’s price?
The dip in Filecoin’s price is attributed to the struggles observed in the Bitcoin market, which has had a ripple effect on the overall cryptocurrency market, impacting altcoins like Filecoin.
What are the support levels to look out for in Filecoin’s price?
If prices fall further, bulls could rely on primary support near $3.1 to $2.7, with the potential for a rebound from the $4.2 price level. However, the technical indicators also show the possibility of a downturn towards lower buffer areas.
Is there potential for FIL to rebound amid the current market conditions?
Despite the bearish outlook, a decrease in daily trading volume suggests a potential shift in selling pressure. If this shift materializes, FIL may bounce back from the $4.2-$4.4 area to reclaim $5.0 as support, setting the stage for a move to higher levels.