Filecoin was mostly bullish during the previous week. It recorded gains of more than 70% as it flipped vital resistances.
The current week is one that many never thought would turn out bearish. This was due to several positive readings from indicators and other instruments.
One such is the Moving Average Convergence Divergence. Due to the massive increases on Wednesday, both the 12-day and 26-day EMA intercepted with the latter coming from below. This event: a bullish divergence signaled the start or continuation of an uptrend.
The second metric, the Relative Strength Index. We noticed a steady surge in its readings as it peaked at 78; indicating the asset was oversold. The impending Golden Cross was another reason many believed the uptrend will enter a new stage.
However, trading action during the present week does not display this sentiment. What happened?
Filecoin is on a Three-day Downtrend
Monday was the first green of the week as we noticed that the asset recorded notable increases but could not hold on to them. After that price action, FIL suffered severe decreases in price.
On Tuesday, it dipped to a low of $7.70 and last more than 4%. During the next intraday session, it retested and flipped $9 but dipped as a result of the increase interest rate. Nonetheless, the cycle ended with the altcoin failing to register any notable changes in price.
The current 24-hour period is no different as filecoin is yet to record any significant changes in value. However, one indicator is still bullish; The Moving Average.
After the first positive contact between the 50-day MA and 200-day MA the distance between the two is growing. While many would take this as a cue to accumulate, metrics like MACD and RSI are printing bearish signals.
As at the time of writing, the 12-day EMA is on a downtrend and may intercept the 26-day EMA if current market conditions remain the same. RSI is also below 70 and is showing no signs of recovery.
In the coming days, one of the key support to watch is the $7.48 as a slip below this may guarantee a drop to $5.4
