Filecoin Price Analysis: Will Filecoin Price Fall to $4 in May? Buy Opportunity?

Filecoin Price Analysis: In the 4-hour time frame chart, the Filecoin price shows the formation of a bearish pennant pattern. In theory, this chart setup offered a temporary pause from the prevailing downtrend only to trigger an aggressive downfall upon the breakdown of its support trendline. Here’s how this pattern could further influence the FIL’s price future trend.

Filecoin Price Daily Chart

• The formation of a bearish pennant pattern forecast a 12% downfall upon successful breakdown.
• The potential downfall may face demand pressure at $4.2, $4 and $3.55
• The intraday trading volume in FILer is $5.5 Billion, indicating a 7.4% loss.

Source- Tradingview

While the market leader Bitcoin remains in an indecisive trend, the Filecoin price continues its narrow consolidation within two converging trendlines of the pennant pattern. The coin price currently trades at $4.391 with an intraday loss of 2.88%. 

Under the influence of a bearish pattern, the FIL price is likely to plunge lower and breach the support trendline. A bearish breakdown from this trendline will recuperate the selling momentum and offer short-sellers an entry opportunity.

For the first target, from the breakdown points is the distance between the first swing high and swing low of the pennant triangle. Thus, the Filecoin price is likely to tumble 12% lower and hit the $3.885 mark. 

Alternatively, a breakout from the triangle’s resistance will offset the bearish thesis

Will Filecoin Price Plummet Below $4 Support?

A successful breakdown below the pennant pattern support will bolster the continuation of the prevailing downtrend. The falling Filecoin price will plunge below the $4.22 and $4 psychological support to hit the $3.855 mark.

• Bollinger Band: A potential breakdown below the ascending trendline will challenge the lower band of the BB indicator indicating an opportunity for momentum selling.
• Directional Movement Index: The DI-(orange) slope moving higher to DI+(blue) reflects the bear trend is intact.