Filecoin Price Analysis : Will filecoin trade sideways or expansion possible?

Filecoin formed a bullish hammer candle with a positive volume and may approach 50 day ema soon.
Filecoin trading near 6 months value area low, prices may see some relief rally towards point of control

In the previous session, Filecoin prices had rejected the recent lows by forming a bullish hammer candle and closed with gains of 1.65%. followed by the current session had broken the previous day high and trading at $4.340 with positive gains of 0.40%.

Higher time frame narrative

Source : FIL/USDT daily chart by Tradingview

On a higher time frame, FIL/USDT prices had been volatile and shown some wild swings in the past couple of months. In the end of July Filecoin shot up almost 80% and made a high of $11.390 but unfortunately was unable to sustain the higher levels and gave up all the gains in just a short span of time.

The 200 day ema(green) sloping downwards is far away from the current prices indicates a trend to remain weak on a positional basis. The 50 day ema (pink) at $4.650 sloping sideways will be act as an immediate resistance for bulls followed by next hurdle will be $5 and $5.70 (POC)

As per Volume profile analysis, Prices are trading near to 6 months Value area low(VAL) at $4.350 which indicates prices may take support at lower levels and try to achieve a point of control placed at $5.70 in coming months. On the higher side, Value area high(VAH) at $7.00 will act as a short term supply zone.

Smaller time frame narrative

On a smaller time frame, FIL/USDT price looks stable and consolidating in the sideways range between $4.000 to $4.715 which is likely to look for expansion soon. If bulls succeed to trade above $5 we may see some positive momentum towards $6 and above or if price slips below $3.975 bears may drag the price a little more lower towards $3.50. The supertrend has generated a sell signal but bulls are aggressively fighting to break the redline and change the trend into their favor.

MACD

MACD had shown strength in the past couple of months but in August it had generated a negative crossover and slipped below zero line. Later, prices lacked momentum and MACD, given multiple crossovers but unable to sustain above the zero line. Recently, it generated positive crossover but still histogram lacks strength indicating mild bearishness.

Summary

Filecoin bulls are strongly defending the recent lows but price analysis does not indicate any trend reversal. The aggressive traders may take a risky trade to buy FIL/USDT at current levels for the target of $5 and above, by keeping $3.800 SL. However, the conservative investors should build buy positions only above $5.00 else investors may trap on higher levels.

Technical levels

Resistance levels : $5.000 and $6.395

Support levels : $3.975 – $3.5000

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.