- Filecoin price plummeted but then rebounded, showing signs of recovery amid market volatility.
- The significant trading volume and OI highlighted continued investor interest in Filecoin.
Last week, Filecoin (FIL) showed significant volatility in its price action. In fact, the price of this altcoin dropped sharply from around $4.20 to below $3.40 on July 5. This drop was followed by a recovery phase, with the price rising again to around $4.00 on July 7.
At the time of writing, Filecoin’s price was: $3.92With a 1.7% increase over the previous trading period, the price fluctuated between $3.84 and $3.98 in the 24-hour range, showing a relatively stable but slightly upward trend in the short term. This slight increase was recorded amidst various market conditions and investor sentiment.
Market Activity and Investor Interest
Filecoin’s press time volume for the last 24 hours was $102,563,467, indicating a healthy level of market activity. Its market cap is also $2,225,402,277, making it a notable player in the cryptocurrency market. But what does this mean for FIL’s price action in the short term? Is it finally time for buyers to jump into the altcoin market?
Ali, a market analyst at X, said: Observe,
“TD Sequential is indicating a buy signal on #Filecoin $FIL 3-day chart, expecting a bounce in 1-4 candlesticks.”
In short, there is a possibility of a short-term bullish trend.
Source: X
Filecoin Technical Analysis and Support Levels
The TA of this altcoin has identified significant resistance levels near $11.87 and in the $7.00-$7.20 range, which coincide with Fibonacci retracement levels. Support has also been identified at $3.77, where price has recently tested and bounced, forming a bullish candlestick pattern. Additional support is seen around $4.00, which correlates with the 0.236 Fibonacci retracement level.
The Relative Strength Index (RSI) was at 39.19, below the neutral 50, which is within bear market territory. Conversely, it also highlighted signs of an uptrend as buying momentum builds.
Volume analysis shows significant buying interest around the $3.77 support level, as indicated by the green arrows on the chart.
Source: FIL/USD, TradingView
finally, CoinglassThere was minimal short-term liquidation at $59.2K and long-term liquidation at $279.11K, suggesting low liquidation activity levels for the day. FIL’s futures open interest also hit a figure of around $130 million, reflecting the total value of Filecoin’s outstanding futures contracts.
Source: Coinglass