Filecoin Price Struggles To Move, Will It Surpass The $6 Barrier?

The 30th largest cryptocurrency Filecoin (FIL) has recorded an increase in its 24-hour trading volume. This recent trend has attracted investors and traders closely monitoring its price movement. However, the coin struggles to break through the important $6 resistance.

The question now is, will Filecoin be able to break the $6 barrier? What’s the future potential of Filecoin? Notably, FIL trading volume surged significantly in 24 hours. This volume indicates increased network activity which might later push FIL price if the crypto market breaks from the current downtrend.    

Filecoin is a peer-to-peer network created by Protocol Labs. Users pay storage miners to guarantee that their files are correctly and securely preserved over time. The Filecoin blockchain keeps track of transactions to verify file storage.

The cryptocurrency market is known for its volatility. Sudden swings in the value of digital assets occur frequently. Being a player in this market, Filecoin has seen increased selling momentum and downward movement.

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FIL has experienced some significant drop in price over the past few days, affecting its overall market sentiment and current price movement. But with the Fear & Greed Index of 61 (Greed), the current sentiment is positive. 

However, given that the price is in a zone where investors are likely to want to sell down, this suggests that there might be a potential price reversal.

The trend reversed due to a shift in direction in the 50-day simple moving average (SMA) on 17 April 2023, and this may continue if bullish momentum remains weak. The SMA indicator is frequently used to spot trends, resistance and support levels, and probable buy/sell signals.

By crossing below the 200-day SMA, the 50-day SMA has also formed a death cross, which might be a bearish signal and suggest a potential selling opportunity. The RSI is closely below the neutral zone, indicating the selling momentum is still high. However, the buyers are trying to build strength. Watch closely for a possible trend revisal.

On 23 April 2023, the Filecoin price dropped by 17.35%, making the coin fall to a support level of $5.117. The banking crisis’s impact on the financial market also affected the price movement of altcoins.

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FIL could drop another 15%, reaching a month-long low of $4.79, if the panic persists and the altcoin breaches the crucial support level at $4.990.

Filecoin trades between support and resistance levels of $5.46 and $5.8. The first significant resistance level for FIL is $6.388. If the price moves above the current point, the coin will reach the next resistance levels, at $8.34 and $9.24.

Featured image from Pixabay and chart from Tradingview