- Filecoin price has reached an important demand zone twice this week.
- Trading volume surged 48% overnight as sellers turned aggressive.
- Money Flow Index (MFI) reached below 50 points, FIL could put crypto in trouble.
Filecoin price is suffering from weak market conditions. Although the highly weighted coins in the crypto markets have already recovered after the collapse of FTX, many altcoins still exist near their yearly lows. Thus, FIL crypto is caught in a situation where the price may fall further at any moment.
Filecoin price is trading at $4.17 against the USDT price at the time of writing. After the green candle of 13th December, the buyers have seen selling pressure since last night. Thus, the market capitalization decreased by 3.9% to $1.42 billion in the last 24 hours. The market cap is witnessing a monthly low, which compels the bears to take more profits.
FIL on 4 Hour Chart
Filecoin prices have retested the vital demand zone several times in the last few weeks. Although buyers have well managed price recovery after seeing the bears’ intense selling, it seems that sellers may record another annual low soon. In fact, the intraday candle is down 1.16% at the time.
Price action is showing lower-highs in hourly time frame as bears have been shifting bullish hurdles in lower side. Thus, the trading volume spiked 48% overnight while sellers looked aggressive.
In terms of the daily price chart, Filecoin price is trading in the upper band of the Bollinger Bands indicator. Meanwhile, the mid-band is often met with selling pressure from buyers, so the bulls should keep the FIL crypto above this area.
The daily RSI indicator is declining towards the oversold zone. Furthermore, with the Money Flow Index (MFI) reaching below the 50 mark, FIL could land the crypto in trouble.
Filecoin price is standing at the verge where bears can dominate the crypto price and move lower further. The RSI is showing a sideways to bearish trend and any big drop in the price can spell trouble for the investors.
Support level – $4.1
Resistance level – $4.7 and $5.0
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.