Can FIL Crypto Continue Downtrend From Pullback?

FileCoin, which is a peer-to-peer network that can store and save files, proposes economic rewards and encryption to ensure that the files are stored steadily over time.

It is generated on the same software that follows IPFS protocol and allows users to pay to store their files on storage providers. The storage availability and price are not fixed by any single company but by a competitive market empowered by FileCoin.

Also, the Filecoin protocol is creatively structured to be distinct from the rest, it creates file storage and its recuperation more safe, reliable, and affordable than classic centralized storage systems. The Filecoin network contains nodes, storage providers, and validators.

Nodes keep the Filecoin blockchain updated and authenticate messages in every block. Storage providers are required to store data on the network, which they are paid and rewarded for in FIL.

Validators are required to handle the state of the network, like accounts, multisigs, and account balances. To store and retrieve data on the network, users need storage and retrieval deals with storage providers or providers.

The storage providers or providers use Proof of Replication (PoRep) and Proof of Spacetime (PoSt) cryptographic proofs.

Additionally, to run messages, validators have to pay a gas fee, which is paid to the block-making storage provider and is made of the BaseFee, GasLimit, GasFeeCap, and GasPremium.

Filecoin advises and gives a very safe, somewhat decentralized, and very cost-effective option to traditional centralized storage systems.

Could Filecoin Price Plunge Further On Daily Chart?

As per the price action of Filecoin on the daily chart, the price was in an uptrend and surged greatly from the demand zone and reached the supply area from $3.00 to $8.00.

However, the FIL crypto has indicated a sign of a downturn as the price slid from a critical level of around 8.00 on the charts.

The FIL asset is displaying bearish characteristics and can reduce more of its value. It has shown bad performance in recent times and it slipped out of the parallel channel and recent price is forming a pullback for the possible continuation of a downtrend up to the demand zone. This could give a consistent downward trend in the upcoming sessions.

The FIL crypto is geared to plummet as it struggles to overcome the resistance level and plunges to the lower levels by violating the uptrend.

Furthermore, the FIL crypto asset is showing bearishness and falling tendencies as it declines below the major trend 20-Day EMA, which is influenced by the sellers’ surge. If the influence of the sellers increases, then the price could drop further, and move beneath the other dynamic supports of the bigger EMAs as well.

The technical tools highlight that the FIL asset is in a bearish trend as MACD made a bearish cross in its domain. Meanwhile, RSI faced rejection from its 14-SMA line, suggesting that the asset is not oversold and can maintain its downward direction until it reaches somewhere around 30.

As of now, the CMP is at $5.864 with an intraday decline of 0.83%, and a 24-hour trading volume is 183.715 Million.

Therefore, if the market succeeds in making a proper pullback for downtrend continuation and slips immediate support it could consume EMA’s dynamic supports and plunge to $3.00.

On the other side, if the number of buyers increases and the pullback fails, the downtrend could flip to an uptrend and it could reach back to $8.00.

Summary

The FIL crypto seems is geared to plummet sharply. It is struggling to overcome the resistance level and plunges. The FIL asset is displaying bearish characteristics and can reduce more of its value.

Furthermore, the FIL crypto asset is showing bearishness and falling tendencies as it declines below the major trend 20-Day EMA. The technical tools highlight that the FIL asset is in a bearish trend.

If the market succeeds in making a proper pullback for downtrend continuation and slips immediate support it could consume the EMA’s dynamic supports and plunge to $3.00.

Technical Levels

Support Levels: $3.00

Resistance Levels: $8.00

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.