Filecoin’s (FIL) price is not alien to the conditions of the crypto market, which is attempting to prevent further beating than the one already taken.
However, FIL holders do not appear to be on the same page, as their move towards selling will make recovery difficult.
Filecoin Investors Show a Lack of Optimism
Filecoin’s price is bearing the brunt of the skepticism, as the altcoin consistently falls on the daily chart. The indicators led by the Relative Strength Index (RSI) further substantiate this sentiment.
RSI indicates that the increasing bearish sentiment in the broader market has amplified the selling pressure. This is evident as the RSI has dropped sharply below the neutral line after noting consistent upticks.
Furthermore, the shift in FIL’s funding rate, which has turned negative for the first time in two weeks, further underscores the market’s bearish outlook. This sudden change is a significant indicator of investors’ expectations.
The negative funding rate suggests that investors are now willing to pay a premium to short the asset, indicating a lack of confidence in its near-term performance. This shift in sentiment reflects broader concerns about the market’s stability.
Read More: Filecoin Staking: How To Get Started
This could make a recovery quite a challenge for Filecoin.
FIL Price Prediction: Breaching a Barrier
Filecoin’s price has fallen 12% over the last four days despite breaching a key barrier of $4.6 earlier this week. Currently trading at $4.1, the altcoin is below the support of $4.2, inching closer to $4.0.
If the decline continues, Filecoin’s price is vulnerable to a correction to $3.5. This would also wipe out all the profits attained by the asset in the last twenty days.
Read More: Filecoin (FIL) price prediction 2024/2025/2030
However, a bounce back is possible if $4.2 is secured as a support level again, which could send it above the $4.6 support again. Reclaiming it could trigger recovery, pushing FIL beyond $5.0 to invalidate the bearish thesis.
Disclaimer
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 Conditions, Privacy Policy, and Disclaimers have been updated.
