Cryptocurrency trading is associated to enormous volatility and fluctuations in the market value. Filecoin (FIL) - the 30th largest cryptocurrency - is no exception to this. Investors and traders observe it closely in order to identify opportunities. Lately, Filecoin has been facing resistance at the important level of $6. While a surge in trading volume impressively testified increased activity on the network, there are contrasting signals indicating a possible reversal of the trend due to weak bullish momentum and a death cross pattern on the 50-day Simple Moving Average.

Created by Protocol Labs in 2017, Filecoin is a decentralized storage network whereby users pay storage miners to guarantee safe-keeping of their files over a certain timespan. The blockchain is responsible to record transactions, as well as verifying file storage.

Beyond this current bearish sentiment, investors still remain hopeful for a possible trend reversal. Its Fear & Greed Index on the other hand, scored 61 points on the Greed scale, translating to a positive sentiment. On 23 April, it dropped 17.35% and reached the month-long low of $4.79. This decrease is slightly linked with the wide-affected banking crises in the financial market. The prices of altcoins being involved in the game as well. The support level to closely watch is $4.99 and it is estimated that if the panic amongst investors and traders wait, there is a potential for a 15% drop.

The current prices are between the resistance of $5.46 and $5.8. Traders should be alerted in case of breaking the crucial resistance level located at $6.388. Should the situation progresses favorably, Filecoin will reach its next resistance level at $8.34 and $9.24. In summary, Filecoin - like other altcoins - is subject to market volatility and a variety of signals indicate a delicate investment opportunity, given the complexities of the financial market. Nonetheless, its current records demonstrate a neutral-to-positive sentiment and investors remain confident in the potential of Filecoin to surpass the $6 barrier.



Other News from Today