fxs_header_sponsor_anchor

Filecoin Price Prediction: FIL could retrace 30% before resuming its uptrend

  • Filecoin price has moved out of the Bollinger Bands indicator’s top end, suggesting an overextended bull rally.
  • The recently spawned sell signal from the MRI suggests a one-to-four candlestick correction is likely.
  • A 30% retracement to the 61.8% Fibonacci retracement level at $108.64 seems plausible if the support level at $153 is broken.

The Filecoin price shows a retracement to an immediate demand barrier is likely after the recent but explosive run-up.

Filecoin price hints at pullback

The Filecoin price has seen a 551% surge from February 21 to March 29, which has propelled it from a mere $30 to $238. FIL seems to be heading higher after retracing nearly 32% on April 1.

The Bollinger Bands indicator reveals that the recent run-up has pierced through its upper band suggesting an overextended volatile bull rally. More often than not, this signal indicates that a retracement is around the corner. 

If such a pullback were to occur, FIL would first drop 18% to $153.28, the 78.6% Fibonacci retracement level. However, if this area of demand crumbles, the Filecoin price could visit the 61.8% Fibonacci retracement level at $108.41, after a 30% drop.

Adding credence to the bearish outlook is the red one candlestick formed by the Momentum Reversal Indicator (MRI) on the 3-day chart. This setup forecasts a one-to-four candlestick correction.

FIL/USDT 3-day chart

It is worth noting that the bullish outlook is dependent on the assumption that MRI’s reversal signal is yet to be completed. However, if it is not, a possibility of a new uptrend evolves. 

Therefore, a spike in buying pressure that pushes FIL by 25% will trigger a local top’s retest at $238.51. If the buyers manage to produce a decisive close above this level, it will reignite FIL’s bullishness and propel the coin 15% toward $272, which coincides with the breakout line produced by MRI.

A strong close above this level could allow the sidelined investors to step in, pushing FIL 53% to the next target at $417 or the 127.2% Fibonacci retracement level.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.