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Filecoin: Traders should be aware of this resistance before opening a position.

Disclaimer: The results of the following analysis are the sole opinions of the authors and should not be construed as investment advice.

Filecoin is ranked 44th by market cap on CoinMarketCap. Average daily trading volume was only about $100 million last month, compared to billions of dollars in April and May last year. This is understandable, as the price has dropped nearly 90% since this peak. However, development activity is increasing. Does this have a bullish effect on asset prices?

FIL-1D

Filecoin Expansion May Imminent — See This Resistance Level

Source: FIL/USDT on TradingView

A clear downtrend has been observed over the past few months as the FIL fell below several resistance levels and tested again as support. The $16.84 level has been tested three times since January, with the most recent test dropping to $16.6.

Iterative testing of the support level shows that the level is weakening, but in this case a fall to $16.6 could provide liquidity before moving higher.

Over the past two weeks, the price has again risen above $18.9 and the next important level is the resistance at $20.89 and $22.23, turning the market structure into a bull market.

Radical

Filecoin Expansion May Imminent — See This Resistance Level

Source: FIL/USDT on TradingView

The Bollinger Bands shown in the price chart show that this band has contracted around price in recent weeks, indicating a stage of compression. Volatility may follow and point upwards. The Bollinger Bandwidth indicator is close to its last several-month low at the end of December, near 0.14.

The RSI hasn’t broken above its neutral 50 on the daily chart for months, but everything seems to have changed. OBV showed a downward trend along with the price, but since the end of January, the low has also risen, confirming some buying momentum.

As a result

The indicator shows demand growth and bullish momentum, and depending on the compression phase, File coin could expand northward. This move needs to break the $22.23 level to turn the market structure into a bullish bias.

Information source: Edited by 0x Information in AMBCRYPTO. The copyright belongs to the author, and unauthorized reproduction is prohibited.

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