Filecoin (FIL) has hit a seven-month low, preparing for a comeback
Filecoin (FIL) has seen its price slide from $6.13 to $4.35 in less than seven days. As of this report, the altcoin is trading at $4.46 after falling to its lowest value since December 1, 2023.
Bears breached the $5 support on June 15, but FIL appears to have reached a local low. Here's what the on-chain and technical analysis has to say about the price.
Ask the originals, but things are getting better.
BeinCrypto's findings show that FileCoin sank due to lingering pessimism and lack of interest in cryptocurrencies. After examining the condition of the feeling of heaviness, we found evidence.
Weighted sentiment is an improved version of social scale. Spikes in the scale occur when the social dimension is high and the mention of the property is positive on average. Conversely, dips occur when most comments online are negative.
On June 7, Filecoin's weighted sentiment jumped to 5.54. Around that time, the stock traded at $6.13. However, over the past few days, the readings have been declining. At press time, the sentiment reading stands at -0.48.
Read more: Filecoin Staking: How to get started
Typically, negative sentiment around a cryptocurrency can keep demand for the coin low. This is because market participants make cautious moves and a wider understanding of the token in question, FIL, may not change significantly in the short term.
However, FileCoin's social dominance has grown to 0.11% at the time of writing. Built on top of social data, Social Dominance measures the discussion of a cryptocurrency in the media compared to other assets in each market capitalization 100.
As the chart below shows, an increase in this parameter indicates an increase in price. When it fails, it leads to failure. Therefore, FIL is recovering from recent lows until social dominance rises.
FIL Price Prediction: $4.94 looks possible
Looking at FIL from a technical perspective, the indicators are in line with the bullish forecast. On the daily chart, the bulls defend the $4.35 range and use it as support to prevent further declines.
If the resistance remains strong, FIL could move towards $4.04, a major resistance. Furthermore, the sequence of Tom Demark (TD) confirms this view. A TD sequence indicates the end of a trend and helps identify the beginning of a new one.
As the chart below shows, sellers are tired, and buyers are cashing in on the effort. If this trend continues, the price of FIL may rise to $4.94 as initially stated. If confirmed, this prediction will materialize in the next one to five days.
Additionally, the Relative Strength Index (RSI) indicates that FIL is oversold. RSI is an oscillator that uses recent price changes to measure momentum. When the reading is more than 70, it is the property Overpriced. But a reading of 30 or below means it is oversold.
At the time of press release, the FIL/USD daily chart shows an RSI of 30.39, which means the token is oversold and trending higher. If this upward trend continues, the price of FIL will rise.
Read more: Filecoin (FIL) Price Prediction 2024/2025/2030
However, if another round of selling pressure hits the market, a fall in value could occur. If this happens, the price of FIL will be below $4.
The post Filecoin (FIL) hits seven-month low, set for rebound appeared first on BeInCrypto.
