See More

Filecoin (FIL) Price Depends on Investor Sentiment After 9-Month Low

2 mins
Updated by Ryan Boltman
Join our Trading Community on Telegram

In Brief

  • Filecoin’s price is rising from $3.5, with the aim of breaching the barrier at $4.6 to recover losses.
  • The RSI noted the most intense bout of overselling, which historically has been followed by rallies.
  • The Funding Rate has turned positive from negative, suggesting a dominance of long contracts.
  • promo

Filecoins’ (FIL) price recently reached a multi-month low, which it is attempting to recover from. This will warrant support from its investors.

Looking at the market conditions, this seems possible, provided the bullishness noted amongst investors sustains. 

Filecoin Could See a Rise

Filecoin’s Relative Strength Index (RSI) recently indicated the most intense bout of overselling in ten months. Overselling occurs when the RSI falls below 30.0, a condition that often precedes a price rally.

Historically, such periods of overselling have been followed by rallies, suggesting that Filecoin might be poised for a price increase. The RSI’s sharp dip could attract investors looking to capitalize on the potential for gains.

Filecoin RSI
Filecoin RSI. Source: TradingView

In addition to the RSI data, Filecoin’s Funding Rate has shifted from negative to positive. The negative rate suggests that most of the contracts in the futures market are shorts, whereas positive rates indicate a dominance of long contracts in the market.

The positive Funding Rate suggests that investors are betting on a price rise for Filecoin in the near future. This shift in sentiment could further fuel the anticipated rally, reinforcing the bullish outlook for Filecoin.

Read More: Filecoin Staking: How To Get Started

Filecoin Funding Rate.
Filecoin Funding Rate. Source: Coinglass

FIL Price Prediction: Watch out for $5

Filecoin’s price is trading at $3.9 at the time of writing, attempting to breach $4.2 and flip it into a support line. This line has acted as a serious support level for the altcoin, and it could also help FIL breach $4.6 and head towards $5.0.

Breaching $5.0 will help the investors realize considerable profits. Plus, being a psychological support level, reclaiming it would drive additional investment towards the asset.

Read More: Filecoin (FIL) price prediction 2024/2025/2030

Filecoin Price Analysis.
Filecoin Price Analysis. Source: TradingView

However, if this fails, Filecoin’s price could be subjected to consolidation between $4.6 and $4.2. Falling below the latter would invalidate the bullish cues, bringing FIL back to present levels and extending the wait for recovery.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold 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
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.

Frame-2t314.png
Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
READ FULL BIO
Sponsored
Sponsored