Filecoin (FIL) risks deeper pullback as price retreats to key level. FIL traded near $4.6 on Friday afternoon, about 8% down in the past 24 hours. If prices fall further, bulls could rely on primary support near $3.1 to $2.7

Filecoin (FIL) price is likely to retreat below a critical support level after the altcoin’s performance mirrored the struggles seen in the Bitcoin (BTC) market in the past 24 hours. Filecoin price was changing hands around $4.6, down roughly 8%.

While bulls could rebound off the $4.2 price level, the technical outlook presents a potential dip to lower buffer areas.

The 8% decline in FIL value the past 24 hours adds to this observation, particularly if Bitcoin, Ethereum and other top alts fail to find a bounce to stem current bleeding.

Filecoin price chart. Source: TradingView

The technical view presents a picture of uncertainty after bulls got rejected at $5.6 and then gave up $4.7. 

We can see both the daily RSI and MACD indicators are signalling weakness, with the RSI indicator above 50 but downsloping. The MACD indicator suggests a bearish flip.

In terms of a bearish outlook, Filecoin risks falling to the $3.9 support line, with extended downward pressure here likely to push FIL/USD to the critical demand reload zone between $3.1 and $2.7.

However, the 19% decrease in daily trading volume points to a potential flip in sell pressure.  As such, the opposite setup could see FIL rebound off the $4.2-$4.4 area to reclaim $5.0 as support.

If this happens, a move to the recent six-month peak above $5.6 could allow bulls to attack $6.5. The short term picture could pave way for more bullish movements should the broader market provide favourable conditions.

The post Filecoin (FIL) retreats to key level as Bitcoin struggles near $36k appeared first on CoinJournal.

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