Filecoin Price Prediction: FIL poised for a pullback down to $28 before the next leg up

Filecoin price is up 40% in the past two days, breaking several resistance levels.
The digital asset still faces a critical barrier at $34 and might be poised for a correction soon.
FIL bulls must push the digital asset above $34 to see another leg up.

Filecoin had an amazing trading start back in October, reaching $100, but quickly plummeted down to $23 and never managed to fully recover. The digital asset has been on a tear recently, rallying to almost $34, but is currently facing a lot of selling pressure in the short-term and could see a pullback down to $28.

Filecoin at risk of a massive rejection from critical level

Filecoin price has gotten rejected from a crucial barrier at $34 which has been in place since almost the foundation of the asset. On the 4-hour chart, the TD Sequential indicator has presented a sell signal right after the current rejection, adding even more selling pressure.

FIL/USD 4-hour chart

On the daily chart, Filecoin price stopped at $33.9 and can quickly fall towards $30.5 which is the 78.6% Fibonacci retracement level. The next potential price target is $28, which is the 61.8% level.

FIL/USD daily chart

However, a clear breakout above $34 would invalidate the bearish outlook as this resistance barrier is significant. FIL bulls can drive the price up to $40.89 which is the high set on October 26, 2020.

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.