FIL drops 8% when Bitcoin struggles
Filecoin (FIL) risks a deep retracement as price pulls back to a key level. FIL traded at $4.6 on Friday afternoon, down 8% in the past 24 hours. If prices fall further, bulls can rely on initial support near $3.1 to $2.7.
After the altcoin's performance showed the struggles seen in the Bitcoin (BTC) market over the past 24 hours, the price of FileCoin (FIL) may retreat below a key support level. FileCoin's price was changing hands around $4.6, down roughly 8%.
FIL Price View – Will Bulls Take Profits?
While bulls may rebound from the $4.2 price level, the technical observation suggests a possibility of a dip in lower storage areas.
FIL's 8% price drop in the last 24 hours adds to this observation, especially if Bitcoin, Ethereum and other top alts look to stem the current bleeding.
Filecoin Price Chart Source: TradingView
The technical outlook paints a picture of uncertainty after bulls declined at $5.6 and offered $4.7.
Both the daily RSI and MACD indicators are a sign of weakness, we can see that the RSI indicator is above 50 but is trending lower. The MACD indicator suggests a bearish reversal.
From a speculative perspective, Filecoin is at risk of falling to the $3.9 support line, where extended downward pressure could push FIL/USD into the critical demand reset zone between $3.1 and $2.7.
However, the 19 percent drop in daily trading volume suggests that sales pressure may be easing. As such, a contrarian setup could see FIL clear the $4.2-$4.4 area to reclaim $5.0 as support.
If that happens, a move to a six-month high above $5.6 would allow bulls to attack $6.5. If the broader market provides favorable conditions, the short-term picture could pave the way for more bullish moves.
