- Filecoin (FIL) is currently trading at $4.718600.
- Filecoin (FIL)’s live market cap is $2,044,661,888.
- Filecoin (FIL)’s 24-hour volume is $162,196,496.
Filecoin (FIL) is a cryptocurrency linked to the Filecoin network, which is a layer 2 scaling solution for Ethereum. Filecoin promises to improve Ethereum’s scalability and efficiency by exploiting off-chain processing while retaining the Ethereum network’s security and decentralization.
Filecoin employs Optimistic Rollups technology, which allows for speedier transaction processing and lowers gas prices as compared to the Ethereum main net. Users can benefit from cheaper costs and faster confirmation times by dumping transactions onto the Filecoin network.
Trend Analysis
A detailed look of the daily timeframe chart reveals that Filecoin (FIL) is currently stuck in a went through decline. This unfavorable trend began in April 2021, resulting in a significant drop that brought the price to a serious all-time low of $2.44. This sudden decrease for an incredible 97% drop.
Filecoin is currently in close range to a critical resistance level of $5.01. If the price manages to break over this resistance barrier by chance, optimistic investors could forecast a possible rally toward the desired price point of $10.59. However, if price fails to break the resistance we could see the consolidation of price in between the range.The probability of falling is higher as the overall structure of Filecoin is weak
Filecoin (FIL) Price Analysis
Filecoin now has multiple signs indicating a negative outlook in the market. To begin, the price of Filecoin is trading below the 20, 50, and 100-day Exponential Moving Average (EMA) levels, indicating a downward trend for the coin. This continuous trading below the EMAs indicates a lack of upward momentum and the possibility of further resistance.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator contributes to the negative story. The MACD histogram shows a red bar formation, indicating that bullish momentum is fading. The MACD line, which is located below the signal line, adds to the bearish feeling.
Also, Filecoin’s Relative Strength Index (RSI) is now sitting at 39, indicating a very neutral position and a lack of strong positive momentum. This indicates that buyers are not putting significant purchasing pressure on the coin at the moment.
When looking at the volume activities of Filecoin, it is clear that the general volume is decreasing, as seen by the smaller bars on the chart. This drop in trade activity reflects lower market participation and declining buyer interest.
Conclusion
After detailed research, it is possible to determine that Filecoin (FIL) is now displaying a bearish pattern, raising the possibility of a downward price trend. This conclusion is supported by the findings of the MACD and EMA indicators, both of which clearly indicate a dominant downward momentum. However, it is advised not to take entry before the breakout.
Technical Levels
- Support – The current support level of Filecoin (FIL) is $2.84.
- Resistance -The current resistance level of the Filecoin (FIL) is $5.01.
Disclaimer
The views and opinions expressed by the author, as well as those of anybody else mentioned in this piece, are only for informational purposes. They do not provide any financial, investing, or other advice. When buying or trading cryptocurrencies, there is a risk of financial loss.
