Filecoin (FIL) Price Depends on Investor Sentiment After 9-Month Low
07/11/2024 01:45
Filecoin's price could start recovering as long as investors and the market remain aligned and selling pressure stays minimal.
Filecoins’ (FIL) price recently reached a multi-month low, which it is attempting to recover from. This will warrant support from its investors.
Looking at the market conditions, this seems possible, provided the bullishness noted amongst investors sustains.
Filecoin Could See a Rise
Filecoin’s Relative Strength Index (RSI) recently indicated the most intense bout of overselling in ten months. Overselling occurs when the RSI falls below 30.0, a condition that often precedes a price rally.
Historically, such periods of overselling have been followed by rallies, suggesting that Filecoin might be poised for a price increase. The RSI’s sharp dip could attract investors looking to capitalize on the potential for gains.
In addition to the RSI data, Filecoin’s Funding Rate has shifted from negative to positive. The negative rate suggests that most of the contracts in the futures market are shorts, whereas positive rates indicate a dominance of long contracts in the market.
The positive Funding Rate suggests that investors are betting on a price rise for Filecoin in the near future. This shift in sentiment could further fuel the anticipated rally, reinforcing the bullish outlook for Filecoin.
Read More: Filecoin Staking: How To Get Started
FIL Price Prediction: Watch out for $5
Filecoin’s price is trading at $3.9 at the time of writing, attempting to breach $4.2 and flip it into a support line. This line has acted as a serious support level for the altcoin, and it could also help FIL breach $4.6 and head towards $5.0.
Breaching $5.0 will help the investors realize considerable profits. Plus, being a psychological support level, reclaiming it would drive additional investment towards the asset.
Read More: Filecoin (FIL) price prediction 2024/2025/2030
However, if this fails, Filecoin’s price could be subjected to consolidation between $4.6 and $4.2. Falling below the latter would invalidate the bullish cues, bringing FIL back to present levels and extending the wait for recovery.
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Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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