FIL Price Analysis: Correction Sentiment Threatens Filecoin Price To Hit $5
The FIL price resonated within the symmetrical triangle portion of the pennant pattern for the past three weeks. The sellers triggered a bearish breakdown from this pattern in response to the recent sell-off in the crypto market. The resulting downfall plunged to $6.3 support, which has temporarily halted the current correction.
Key points:
- The FIL prices have deprecated 37% in the last three
- The 20-day EMA is nearing a bearish crossover with the 50-day EMA
- The intraday trading volume in Filecoin is $478 Million, indicating a 28.6% gain
Source- Tradingview
Amid the last month’s recovery, the FIL/USDT technical chart formed a pennant pattern in the daily time frame. This bullish continuation pattern was supposed to accelerate the buying momentum to extend the recovery rally higher.
However, the recent news that the US Fed may increase the interest rate by 0.75% in September has caused quite an impact on the crypto market. As a result, similar to some other major cryptocurrencies, the FIL price witnessed a sudden sell-off.
This selling pressure triggered an unusual activity of bearish breakdown from the pennant pattern. The post-breakdown fall tumbled the FIL price 17.6% down. The altcoin currently trades at $6.64 and has recently breached an in-between resistance of $7.62 support.
The FIL price is likely to revert higher to retest the pierced support. Thus, if the sellers sustain the price below the $6.64 flipped resistance, the altcoin may challenge the $6.28 support.
A candle closing below this level will undermine the July-end recovery and sink the prices back to the $5 bottom support.
Technical indicator
EMAs: with the currency downfall, the coin price dropped below the 20-and-50-day EMA, offering an extra edge for short sellers. These slopes may flip to viable resistance and resume ongoing correction.
RSI Indicator: the daily-RSI slope has nosedived into bearish territory, indicating market sentiment has turned bearish.
ADX: the downsloping ADX slope indicates a loss of bullish momentum.
- Resistance levels- $7.62 and $9.5
- Support levels- $6.28 and $5
- XRP to $9? Analysts Tip ‘XRP Is a Buy’ as Price Targets 200% Surge
- CZ Endorses Hyperliquid Rival Aster DEX, Token Rallies 1,500%
- Tom Lee’s BitMine Adds $84M in ETH as Expert Predicts Ethereum Rally to $5K
- Grayscale’s Crypto Index Fund Sees ‘Solid Start’ as SOL, XRP Institutional Demand Climbs
- Senate Democrats Urge Republicans for ‘True Collaboration’ to Quickly Pass CLARITY Act
- PUMP Price Forecast: Whale Buys 1B Tokens as Bullish Pennant Signals 65% Breakout
- Bitcoin Price Prediction: Analyst Highlights Breakout Patterns as Coinbase CEO Backs Crypto Structure Bill
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
