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.
- Natalie Harris
- 2023-04-27
Filecoin (FIL) Price Analysis - Tradable Opportunities
Filecoin (FIL) is the 30th largest cryptocurrency and investors and traders are observing it closely in order to identify trading opportunities. Discover how to capitalize on them with the latest Filecoin price analysis.