Signal price

Prices under threat of correction with a breakdown of $8

Posted 5 hours ago

Over the past three months, Filecoin (FIL) price action has turned into a cup and handle pattern. The psychological $5 level formed the lower support of this pattern and reinforced a new recovery rally. Although a bull run nearly doubled the altcoin in a week, supply pressure at $9.5 limited bullish growth.

Key points:

  • FIL price shows perpendicular growth in the daily timeframe chart
  • The 20 and 100 DMAs are approaching a bullish crossover
  • Intraday trading volume in Filecoin is $480.1 million, indicating a gain of 17.8%

Chart FIL/USDTSource- Commercial view

In late July, WIRE price showed perpendicular growth and jumped 118.3% to its current all-time high of $11.24. However, the altcoin could not sustain and immediately came back with a higher price rejection, indicating profit booking by traders with short-term views.

Additionally, the post-correction rally attempted to resume the current rally but was unable to break above the $95.4 mark. On August 7, the FIL price declined from this local high, and the resulting 15.5% drop revealed the formation of a double top pattern.

This bearish reversal pattern presents its neckline support at the $8 mark. Additionally, this support break will shift the cup and handle pattern and trigger the realization of the double top.

According to the technical setup, the double top pattern is expected to push the price of the coin down by 20% to reach the $6.3 support.

On the contrary, if the altcoin holds above the $8 support, prices may consolidate for a few more sessions and keep the cup and handle pattern intact.

Technical indicator

Bollinger Band- a reversal from the upper band of the indicator usually triggers a retracement towards the neutral line. The coin chart shows this middle line currently at $7.10, and thus the altcoin is likely to complete the bearish pattern.

MACD Indicator: A bearish cross between the fast and slow lines may soon trigger a sell signal and encourage a break of the $8 support. Additionally, faded bars on the histogram indicate loss of bullish momentum.

  • Resistance Levels – $9.8-9.5 and $12
  • Support levels – $8 and $7.1

For the last 5 years, I have been working in journalism. I have been following Blockchain & Cryptocurrency for 3 years. I’ve written on a variety of different topics including fashion, beauty, entertainment, and finance. contact me at brian(at)coingape.com

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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