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Filecoin (FIL) Price Must Clear This Key Level to Resume Uptrend

2 mins
Updated by Geraint Price
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In Brief

  • Filecoin (FIL) price is following a long-term descending resistance line.
  • It bounced at the $5.11 horizontal support area.
  • Filecoin (FIL) broke out from a descending parallel channel.
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The Filecoin (FIL) price could soon break out from a crucial resistance level, accelerating the rate of increase in the process.

FIL is the native token of the Filecoin network, which offers decentralized storage services. The FIL price has decreased below a long-term descending resistance line since March 2021, when it had reached an all-time high of $237.73. The downward movement led to a low of $2.37 in December 2022. Afterward, the price began a bullish reversal that is still ongoing. 

While the FIL price was rejected by the resistance line (red icon), it still trades above the $5.55 horizontal support area. Whether it breaks out from the resistance line or falls below the support area could determine the future trend’s direction. A breakout could lead to an increase toward $25 while a breakdown would likely lead to a fall toward $2.

The weekly RSI is bullish, since it has generated bullish divergence and is nearly above 50. As a result, a breakout from the descending resistance line is more likely. 

Filecoin (FIL) Price Resistance
FIL/USDT Daily Chart. Source: TradingView

Filecoin (FIL) Price Resumes Bounce

The technical analysis from the daily time frame is leaning bullish but does not confirm the bullish reversal yet. The price completed a five-wave upward movement on Feb. 17 and began to decrease afterward. It bounced on March 11 (green icon) and created a bullish engulfing candlestick the next day.

The bounce validated the $5.11 horizontal area as support. The area coincides with the 0.618 Fib retracement support level. The trend can be considered bullish as long as the price is trading above it. However, the daily RSI is not above 50 yet. Therefore, a breakdown below $5.11 could trigger a sharp fall toward $3.

Filecoin (FIL) Price Bounce
FIL/USDT Daily Chart. Source: TradingView

The six-hour chart shows that the Filecoin price broke out from a descending parallel channel. Since such channels usually contain corrections, the breakout could mark the beginning of a new upward movement. The main resistance area is at $7.10, created by a horizontal level and the 0.5 Fib retracement resistance. Since a breakout from it would also mean that the FIL price broke out from the long-term descending resistance line, it would confirm that the long-term trend is bullish.

FIlecoin (FIL) Short-Term Movement
FIL/USDT Six-Hour Chart. Source: TradingView

To conclude, the most likely FIL price forecast is a breakout above the long- and short-term resistance near $7.10. If this occurs, it could accelerate the rate of increase toward $25. On the other hand, another rejection could lead to a drop toward $3.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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