Filecoin is on the headlines this week following its massive increase. It kicked off the session like most crypto assets; low trading volume on Monday. Most traders feared the worst after that performance.
Tuesday reduced these concerns and the coin had its first notable positive change of the week. It dipped to a low of $4.75 but surged to a high of $5.10. It closed a little lower; recording gains of more than 4%.
Wednesday was not short of bullish sentiment as the coin attempted the $5.5 resistance. It failed to flip it but ended the intraday session with gains exceeding 7%. The $5.5 barrier crumpled the next day but not for long as FIL faced strong rejection at $6.
Friday was the main highlight of the filecoin surged to its highest in more than five months. It registered its biggest positive change in over a year. It opened trading at $5.41 and closed at $7.62. These figures are indications that the altcoin amassed a whopping 40%.
We are seeing a similar attempt during the current intraday session. It opened at $7.52 and surged to a high of $9.5; racing past the $9 barrier. However, it experienced strong rejection at its peak but is exchanging at $8.48 at the time of writing.
Currently up by 72%, questions of how the altcoin will perform in the coming days are taking the central stage. Let’s examine how it’s acting now.
Filecoin is Overbought
The Relative Strength Index was at 47 at the start of the week. Friday’s action saw it break above 70; it became overbought. With the bullish sentiment still in full gear, RSI is at 78 at the time of writing.
During the present intraweek session, FIL also had a bullish divergence on the Moving Average Convergence Divergence. It is safe to conclude that the coin is still positive and may crush more resistance. However, there is an indication of an impending correction.
As the altcoin is overbought, it is a stark reminder that it is due for a much-needed downtrend. On the other MACD is displaying no bearish signals for now.
Currently, the 50-day Moving Average is on an uptrend and may intercept the 200-day MA if current conditions continue. With a golden cross on the way, FIL is en route to flip key negative barriers. Let’s look at the key levels to watch
FIL may Flip $10
Key Support: $4.60, $4, $3
Key Resistance: $9, $11.5
A look at the chart shows that the current run is not buoyed by much support. The available positive barriers are far from the current price action. This means the coin may free-fall until it finds support at an already established level or it creates new ones.
Nonetheless, based on previous price, the $8 support is another level to consider. The first level to watch is the $4.60 barrier. The last time it came under test was last week and it held out. Other attempts at the mark failed; indicating its strength.
If it breaks, the next level to watch is the $4 support. Before losing the mark in December, it served as a strong barrier for more than three months. We may bank on the same taking place this time.
In a worst-case scenario, the highlighted may flip. This will open the $3 support. It is a long-term barrier and the toughest on the list.
On the part of resistance, it is worth noting that FIL faced strong rejection at $9.5. Due to this, it retraced below $9. The altcoin must reclaim this level.
Based on previous price movements, a steady exchange above the highlighted mark is a guarantee of $10 flipping. We may also see an attempt at the $11.5 barrier.
