Filecoin Recovers Over 4% From Intraday Lows: Is Pullback Expected？

• 1 Filecoin (FIL) crypto is trading inside a falling wedge pattern and slipped to the $3 mark.
• 2 A pullback of over 4% from the bottom was noted, signifying the accumulation.

This week, the bears have been in control and the buyers have lost momentum, as FIL declined by 20%.

Despite this, the crypto asset still showed signs of accumulation from the bottom and recuperated over 4% from its intraday low of $3.29 in the last few hours.

FILhas a strong support around $3 where buyers have a strong hold. For the bears, the $3 mark is the zone to crack to stretch the dropp.

Conversely, if the market sentiment changes ahead, the buyers have to cross the $5 mark to retain the gains and to trigger a reversal.

At press time, Filecoin was trading at $3.54 with an intraday drop of 6.36%, reflecting a decline in the last few hours. It has a monthly return ratio of -40.20% and -33.20% yearly, reflecting short-term profit booking.

The pair of FIL/BTC is at 0.0000636 BTC, and the market cap is $2.01 Billion. Analysts are neutral and suggest that FIL pricemay recover the gains ahead.

Filecoin Price Analysis: A Cautious Approach

As Bitcoin struggled in the past few weeks, FIL, which is mirroring BTC, is also turning bearish.

Recently, it attempted to escape the channel and faced a resistance at the $6 mark and fell from there. Afterward, aggressive short additions led the FIL price to plummet by over 45% in the last one month.

Filecoin Price Chart Source: Santiment

Technicals favor the bears. Until the $5 mark is defended by the bulls, fresh buying could is unlikely.

The Relative Strength Index (RSI) curve stayed in the downside region and produced a negative divergence, implying a conservative approach should be taken by the bulls while accumulating Filecoin.

Its chart setup demonstrated that FIL was in a long bearish wave and looked oversold, meaning that a bounce to the $4.30 mark is anticipated. Afterward, near its downward trendline zone, it might break out soon.

@POSE tweeted that FIL made a bearish move and looked negative on the charts.

$FIL weird. Are you going to 0 #usdt？

— POSE (@posethegreat) July 5, 2024

Source; X

Futures OI Data Overview

Since the beginning of June, $20 Million worth of long liquidations was noted, which created a bearish wave in the last few sessions.

OI Data Chart Source: Coinglass

Its open interest value plunged over by 17.20% to $131.99 Million, signifying the long unwinding activity in the past 24 hours.

The immediate support levels for the Filecoin are $1.80 and $1.30, whereas the key upside hurdle is around $2.40, followed by $3

The Filecoin price fell below its key moving averages and looked oversold. Its technical setup reflected a retracement from the prompt resistance of $6 as buyers unwinded their long positions in the last few sessions due to fear of missing out (FOMO).

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.