The price of FIL must break through resistance at USD 26 for a reliable bullish signal to occur. FIL lost the bullish parabolic trend after losing support at USD 52, so the ground was clear for USD 20.
The price of Filecoin (FIL) has fallen by up to 95% amid the decline of the entire cryptocurrency market. In addition, there is no clear sign of reversal at the moment.
FIL is trading at around USD 21.03 and has accumulated a 9.6% gain in the last seven days. Its daily trading volume is above USD 398.34 million, and its market capitalization is about USD 3.58 billion. It occupies 40th place in the cryptocurrency ranking, according to CoinGecko.
Investors have remained on the sidelines due to the considerable drop in the price of Filecoin. Minimum rallies have not allowed optimism to take control over the market.
However, a correction of more than 90% also indicates that the space for selling is increasingly small. That has led those trusting that project either in the medium/long term to look for entry points.
Weekly Technical Analysis of the Price of Filecoin
The weekly FIL/USDT chart shows a clear short/medium-term downward trend, which may continue to cause problems.
The price of Filecoin recently found support at the USD 20 level, hampering the previous bearish strength.
There is a rejection above USD 20 again, which seems to be heralding a broader rally. However, that is not the most likely scenario due to the previous clear bearish direction.
In addition, the price must first break through the resistance at USD 26 for the bulls to give a reliable bullish signal. That would leave the ground clear for USD 40.
At this point, there could be further losses for Filecoin. A candlestick closing below the support where the price holds would indicate a search for new lows. An excellent next target for the bears would be USD 15.
Monthly Analysis of the Price of FIL
The monthly Filecoin chart shows a bleak scenario for the price. However, there may be a significant relief rally given the extended downturn.
After losing support at USD 52, FIL lost the bullish parabolic trend that it had carried for several months. For that reason, the ground was clear for USD 20, the support on which the price holds.
Although the trend is clearly bearish, the momentum has extended quite much. The defense of the USD 20 support could herald a significant correction to the upside.
The cryptocurrency must first reach increasingly high lows on the monthly chart for long-term bulls to trust it more.
The decline of the cryptocurrency market due to the conflict between Russia and Ukraine has affected Filecoin. The considerable drop in the value of FIL has led investors that trust the project to seek entry points. Although the rejection above USD 20 indicates a broader rally, the likely scenario is bearish.
By Alexander Salazar
