Filecoin (FIL) Hovering in Narrow Range, Will Bulls Breach $3.50?

• 1 Filecoin price is below the 20 day EMA showing a lack of momentum.
• 2 Buyers are trying to escape the congestion zone above $3.40.

Filecoin price is consolidating in a narrow congestion zone and is hovering in a small range. Moreover, the price action shows that FIL price is trying to sustain above the 20 day EMA, but due to the strong grip of sellers, bulls failed to escape.

Furthermore, the chart shows that Filecoin is in a downtrend and persists in forming lower lows amid the bullish crypto market. However, FIL coin is trading close to the 38.2% Fib zone and that buyers are trying to escape the region to initiate a fresh recovery toward the swing barrier of $3.40. Despite the downtrend, buyers tried their best to absorb the selling pressure and are willing to retain the gains.

On the charts, a rounding top pattern was noted which shows the bears’ grip near the neckline of $4.00 which is the strong supply zone. Amid the consolidation, FIL coin may retest the rejection wick candlestick lows near $2.70 which is the demand zone. If FIL coin surpasses the upper neckline of $3.40, then buying momentum will extend to $3.80, whereas if breakdown happens, sellers will try to push it toward the demand zone of $2.70.

At press time, Filecoin price is trading at $3.159 with an intraday drop of 0.59% showing neutrality on the charts. Moreover, the trading volume increased by 2.78% to $67.30 Million and the pair of FIL/BTC is at 0.000111 BTC. However, the market cap of FIL coin is $1.45 Billion. Furthermore, analysts maintained a neutral rating and suggest volatility will continue in the next sessions.

Will Filecoin Surpass the Neckline of $3.40?

Source: FIL Price Chart on TradingView

On the daily charts, FIL coin price is trading close to the 20 day EMA barrier, but bulls are not able to surpass and are hovering in a narrow congestion zone. Moreover, the price action is favouring the sellers and indicates that a breakdown may be seen if FIL slips below the round mark of $3.00 which will extend toward $2.70. Furthermore, technicals are suggesting that bears will continue to dominate and buyers will feel pressure based on the chart setup which reflects weakness.

The RSI curve is near neutrality, showing convergence due to the consolidating price action. The MACD shows the convergence of the MA line with the signal line and suggests a negative outlook.

Summary

Filecoin price is inside the narrow range and is favoring the downtrend due to the consolidating price action. Moreover, the price action is suggesting that buyers failed to surpass the 20 day EMA hurdle after multiple attempts which replicates the strong grip of sellers.

Technical Levels

Support Levels: $3.00 and $2.70

Resistance Levels: $3.50 and $3.80

Disclaimer

The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.

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