Will The Buying Craze Sabotage Sellers At $10?

The Filecoin (FIL) price shows a sudden bullish reversal after retesting the $8 mark displaying a rise in bullish momentum. Furthermore, the daily growth of 11% regained the $9 mark in an attempt to break above the psychological mark of $10. However, will the bullish momentum undermine the high price rejections we saw earlier this week, or should you consider being bullish despite the long wick candles in the daily chart?

Key points: 

• The FIL price shows a perpendicular growth in the daily time frame chart
• The daily-RSI slope spikes back into the overbought region.
• The intraday trading volume in Filecoin is $765 Million, indicating a 66% gain.

Source- Tradingview

FIL market prices broke the consolidation range between $5 and $6.33 in the daily chart unleashing the tapped bullish momentum with a 35% jump on 30th July. The earliest momentum resulted in a buying-free craze fuelling the uptrend to reach the mark of $11. 

However, as the buyers got exhausted, the higher price rejection led to closing below the psychological mark of $10. Thus, the bearish retracement retested the breached 100-day SMA close to the $8 mark before the long-wick candle led to a bullish reversal breaking the $9 mark.

The FIL price action displays a rounding bottom pattern forming with the bullish reversal with a neckline at the $9.75 mark. Therefore, the bullish breakout might lead to an uptrend above the $11 mark. Moreover, the uptrend continuation might hit the overhead resistance at the $12 mark.

However, a bullish failure to sustain above the $9.15 mark might lead to a retracement rally to test the bottom support of $7.25.

Technical indicator

DMI- The lines showcase a vast bullish gap with a boom in the trend momentum evident by the ADX line. Hence the technical indicator projects a high likelihood of an uptrend continuation.

RSI– The daily RSI slope shows a rounding reversal from the 14-day SMA line breaking above the overbought boundary. 

• Resistance levels- $10, and $12
• Support levels- $8 and $7.19

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.