2023-3-1 18:00 |
The Filecoin (FIL) price is retracing after a sharp upward movement two weeks ago. The trend is still considered bullish.
FIL is the native token of the Filecoin network, which offers data storage services. The Filecoin price created a massive bullish engulfing candlestick on Feb. 13 – 20. The candlestick caused a reclaim of the $5.40 horizontal area. This is a crucial area since it previously provided support for a three-month period starting in June 2022.
The entire upward movement that has been ongoing since Nov. 2022 was preceded by bullish divergence in the weekly RSI (green line). Such divergences often precede significant increases. Moreover, the divergence legitimized the reclaim of the $5.40 support area.
If the increase continues, the next closest resistance would be at $10.
The trend can be considered bullish if the FIL token price does not close below $5.40. If that occurs, the digital asset could fall to $2.
FIL/USDT Weekly Chart. Source: TradingView Filecoin (FIL) Price Breaks OutThe technical analysis from the daily time frame shows that the FIL price broke out from an ascending parallel channel on Feb. 17. This led to a yearly high of $9.50 two days later.
While the price has fallen since it still trades above the channel’s resistance line (green icon). As long as it does, the trend can still be considered bullish.
Additionally, the price could fall toward the channel’s support line at $5.50 without invalidating its bullish trend. However, if the FIL price breaks down from the channel, it would confirm that the trend is bearish, and new lows will follow.
FIL/USDT Daily Chart. Source: TradingViewTo conclude, the most likely FIL price forecast is the continuation of the upward movement toward the $10 resistance area. However, this bullish forecast would be rendered invalid by a breakdown below $5.40.
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The post Filecoin (FIL) Price Looks Set to Resume Its Rally appeared first on BeInCrypto.
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