Lorenzo Stroe
Independent Analyst
- 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.
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