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The Filecoin price soared more than 12% over the last 24 hours to trade at $11.47 at press time.
The Filecoin Price May Be Gearing up for Another Move
4-hour chart for FIL/USDT (Source: TradingView)
A noticeable uptrend has emerged on the 4-hour chart for the Filecoin price as the closing prices moved from $10.15 to a peak of $11.657 before experiencing a slight pullback, stabilizing around $11.487, and then sharply dropping to $9. This pattern suggests a volatile yet bullish momentum in the short term, which has now faced significant resistance, leading to a price correction.
The 9 Exponential Moving Average (EMA) has been consistently rising, indicating that the short-term momentum has been bullish. However, the recent price drop below the 9 EMA suggests a potential shift in momentum. The 20 EMA, starting from $9.866 and ascending to $10.404, reinforces this bullish trend, as prices remained above the 20 EMA until the latest drop. This suggests a strong support level that bulls managed to maintain until the recent reversal.
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The Moving Average Convergence Divergence (MACD) further illuminates the situation. With the MACD line moving from 0.213 to 0.490 above the signal line, and the histogram widening, it signals increasing bullish momentum. However, traders should be cautious, as the latest price action may indicate the beginning of a momentum shift.
The Relative Strength Index (RSI) supports the optimistic outlook initially, with values ascending from 56.66 to 68.08, which points towards a buying pressure. However, the RSI being close to the overbought territory could have prompted the recent sell-off as traders took profits.
FIL at a Critical Point
Given the technical indicators and the current market structure, the Filecoin price is at a crucial juncture. The support levels at $10.301 and $8.919 are immediate areas where bulls may attempt to regain control. A fall below these points could see the price testing the next significant support level at $8.39.
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For traders considering entry points, a bounce off the support levels with adequate volume could offer a long opportunity, aiming for previous highs. Conversely, a break below these supports on increasing volume might provide short opportunities, with caution warranted near the next major support.
In conclusion, while the overall trend appears bullish, the recent price action suggests caution. Traders should look for confirmation of direction from the aforementioned technical levels and indicators. Potential entry points for long positions could be around the support levels if bullish signals emerge, whereas short positions might be considered if the price breaks below these supports with conviction.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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