Is Filecoin’s price ready for a bullish breakout? Analyst claims….

Filecoin’s price dropped sharply, before rebounding, showing signs of recovery amidst market volatility
Significant trading volume and OIs highlighted ongoing investor interest in Filecoin

As a crypto investor with some experience under my belt, I’ve seen Filecoin (FIL) go through its fair share of price volatility in recent weeks. The sharp decline below $3.40 was quite unsettling, but the subsequent rebound to around $4.00 was a welcome sign of potential recovery.

Over the last week, Filecoin (FIL) experienced significant price fluctuations. Specifically, its value dropped sharply from around $4.20 to below $3.40 by July 5th. Following this decline, there was a period of recovery during which the price rebounded to roughly $4.00 on July 7th.

I’ve noticed Filecoin trading at a price of $3.92 currently, representing a 1.7% increase from the previous session. The stock has seen a 24-hour range of $3.84 to $3.98, suggesting a stable and slightly upward trend in the near term. Despite the volatile market conditions and fluctuating investor sentiment, Filecoin has managed to register these modest gains.

Market activity and investor interest

As a researcher studying the cryptocurrency market, I’ve observed that Filecoin (FIL) recorded a trading volume of approximately $102.6 million over the last 24 hours. This figure indicates a robust level of market engagement with the asset. Furthermore, its market capitalization reached an impressive height of around $2.23 billion, establishing FIL as a significant player within the cryptocurrency landscape.

Ali, a market analyst on X, had something to say about this, observing,

Based on the analysis of the TD Sequential indicator, there is a buy signal emerging on the Filecoin ($FIL) 3-day chart. This signal suggests that a rebound of approximately 1 to 4 candlesticks is imminent.

Simply put, a potentially bullish trend can be seen in the near term.

Filecoin technical analysis and support levels

The technical analysis of the altcoin reveals potential resistance points at approximately $11.87 and between $7.00 and $7.20, where these levels align with the Fibonacci retracement levels as well. A supportive price level was observed at around $3.77, which the market price recently touched before bouncing back, resulting in a bullish candlestick formation. Furthermore, an additional support appeared near $4.00, in accordance with the 0.236 Fibonacci retracement mark.

Using a different phrasing, the Relative Strength Index (RSI) indicated a value of 39.19, which is significantly below the neutral mark of 50. This reading places the RSI well within the bearish zone. At the same time, the data suggests emerging signs of an uptrend due to increasing buying pressure.

The volume data suggested strong buyer activity near the $3.77 price support, which is signified by the green arrows on the graph.

In accordance with Coinglass’s report, there were only slight short liquidations at a price level of $59,200 and significant long liquidations at $279.11, implying reduced liquidation activity throughout the day. Furthermore, FIL Futures Open Interest showed approximately $130 million in value, indicating the aggregate worth of active Filecoin Futures contracts.

2024-07-11 09:11

Market activity and investor interest

Filecoin technical analysis and support levels

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