See More

Filecoin (FIL) Price Looks Poised for Another Leg Up

2 mins
Updated by Geraint Price
Join our Trading Community on Telegram

In Brief

  • Filecoin (FIL) broke out from a descending resistance line
  • It is trading above support at $6.90
  • Filecoin (FIL) could be in the third wave of a five-wave upward movement
  • promo

The Filecoin (FIL) price trend is likely still bullish and the upward movement is expected to resume soon.

Filecoin is a decentralized storage network whose native token is FIL. The Filecoin price has increased since reaching a low of $2.41 on Dec. 16. The upward movement led to a high of $9.50 on Feb.19 2023. However, the price created two long upper wicks (red icons), the most recent on Feb. 21. It has fallen since.  

During the previous increase, the FIL price broke out from a descending resistance line and then reclaimed the $6.90 horizontal resistance area, which is also the 0.5 Fib retracement resistance level of the entire previous drop. Now, the area is expected to provide support. 

While the daily RSI is overbought, it has not generated any bearish divergence yet. Therefore, a look at lower time frames is required to determine whether the FIL token price will increase toward the next resistance at $11.35 or fall to $6.90.

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

Filecoin (FIL) Price Has Room to Grow

The wave count from the six-hour time frame supports the possibility that the FIL price will increase toward the $11.35 resistance area. If the count is correct, it would suggest that the price is currently in wave three of a five-wave upward movement (black). Wave three has extended and the sub-wave count is given in red. 

Giving waves 1 and 3 a 1:1.61 ratio (black) would lead to a high near $10. Afterward, a correction could ensue before the final increase.

A drop to $6.90 would not invalidate this count, since that would still be considered part of the correction. However, a close below $6.90 would invalidate it. In that case, the FIL price would be expected to fall toward the $4.50 region. 

Filecoin (FIL) Wave Count
FIL/USDT Six-Hour Chart. Source: TradingView

To conclude, the most likely Filecoin price forecast is an increase toward $11.35. While a drop to $6.90 could occur prior to this pump, the trend is considered bullish as long as the price does not close below $6.90. If it does, the bullish thesis would be invalidated and Filecoin could fall to $4.50.

For BeInCrypto’s latest crypto market analysis, click here.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

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 ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
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)
READ FULL BIO
Sponsored
Sponsored