Filecoin Analysis: FIL Continues to Struggle with Downtrend Despite Golden Cross
Filecoin experienced a predominantly bullish week, with gains exceeding 70% as it successfully surpassed crucial resistance levels. The optimism continued into the current week, fueled by positive readings from various indicators and instruments.
One such indicator is the Moving Average Convergence Divergence (MACD), which indicated a bullish divergence as both the 12-day and 26-day Exponential Moving Averages (EMA) intersected, with the latter rising from below. This signaled the beginning or continuation of an uptrend.
The Relative Strength Index (RSI) also contributed to the positive sentiment, as its readings steadily surged and peaked at 78, suggesting that the asset was oversold. The anticipated Golden Cross further fueled expectations of a new stage in the uptrend.
However, the trading activity in the current week did not align with these optimistic indicators. So, what went wrong?
Filecoin’s performance over the past three days has been on a downtrend. Monday initially showed promise with notable price increases, but the asset failed to sustain these gains. Consequently, FIL experienced significant price decreases.
On Tuesday, it hit a low of $7.70 and dropped over 4%. In the following intraday session, it briefly rose above $9 but fell due to increased interest rates. Ultimately, the altcoin ended the cycle without any significant price changes.
The current 24-hour period has also not brought any substantial changes in Filecoin’s value. However, one indicator remains bullish: the Moving Average. Since the initial positive contact between the 50-day and 200-day Moving Averages, the distance between the two has continued to grow. While this may entice some to accumulate, bearish signals from metrics like MACD and RSI temper the optimism.
At the time of writing, the 12-day EMA is on a downtrend and may intersect with the 26-day EMA if market conditions persist. The RSI is also below 70 and shows no signs of recovery.
In the days ahead, it will be crucial to monitor the key support level at $7.48. A breach below this level could potentially lead to a drop to $5.4.
Tags: Analysis