Filecoin price draws bearish wedge pattern, FIL bear market likely to continue

Filecoin price recovery has stalled as a bearish trend is likely to continue, with momentum continuing to slow down but a bearish wedge pattern being shaped despite the recent range trading..

Filecoin price wedge pattern causes another worry

Filecoin price has failed to sustain moves above the $66.55 resistance zone on Thursday, as sideways trading continues. The cryptocurrency was trading around $56.51 at the time of writing, with intraday losses of -$2.86, and the consolidation appears to continue. 

While the volume-to-market cap ratio stands at 0.1941, with a 24-hours volume of $1,001,278,184.35, FIL is ranked the 24th biggest cryptocurrency with a total market capitalization of $4,689,090,848, down by -5.90%, according to Coinmarketcap.com.

Filecoin is drawing a bearish wedge pattern that shows a correction phase within several downward trends. Although the recent price action shows higher highs and higher lows for the last ten days, buyers have not been able to get the upward trend to work, with $66.50 swing high creating a meaningful resistance area. The long-term bearish trend is likely to continue as the price fails to make a new high. 

The short-term price action shows Filecoin price is in a consolidation phase.

Since June 11, FIL has been trading sideways on the 4-hour chart, showing consolidation between support and resistance levels standing at $50.17 and $66.55, respectively.

FIL price has plunged by over 72% from its all-time high. The 50-day and 200-day moving averages show that the cryptocurrency has developed a death cross, and this signals a continuation of the bear market.  

FIL/USDt 4-hour chart

On the flip side, the small size of the candlesticks shows that the prevailing trend could come to an end, owing to the increasingly balanced strength ratio between the sellers and buyers. Therefore, there is some uncertainty about the direction of the next price movement of Filecoin cryptocurrency.

Although the MACD has been below the neutral line since June 11, the two moving average lines on the chart crossed the 0-level on June 27, and this signals an upward trend is likely to emerge. But the two MACD lines appear to have converged above the 0-level, which indicates a slowdown of the recent FIL rally.