Here’s How You May Trade the Upcoming Correction In Filecoin Price

full version at coingape

Filecoin (FIL) has been one of the highest gainers in the second half of February 2023. During the recent recovery, the coin price doubled its market value from the February 14th low($4.75) and reached a six months high of $9.5 within a fortnight. However, in the last few days, the daily chart showcased reversal signs at this monthly resistance indicating an upcoming correction in Filecoin Price.

Key Points:

A bearish reversal from the $9.5 resistance sets Filecoin for a 16% downfall to reach $6.5 support.
The 20-and-200-day EMA moving near the $6.5 level, creates strong support levels
The intraday trading volume in Filecoin is $1.3 Billion, indicating a 76% gain

Filecoin Price Source- Tradingview

The Filecoin Price witnessed a massive inflow in February’s third week. This bullish recovery could be attributed to two reasons that are the upcoming release of the Filecoin Virtual Machine (FVM), and Hong Kong’s proposal for the legalization of crypto trading.

However, in the last four days, the price chart showed long higher price rejection candles near the monthly resistance of $9.5. These rejections indicated the exhausted bullish momentum and an increased possibility for bearish correction.

Anyhow, this correction phase could be beneficial for Filecoin holders as it offers a period for retesting and recovering the prior uptrend. By press time, the FIL price trades at the $7.781 mark with an intraday loss of 4.86%.

Also Read: Top 10 DeFi Lending Platforms In 2023

With today’s bearish candle, the coin price breaks below the local support of $7.86, encouraging further downfall. Thus, If the selling pressure persists, the coin holders must look for the $7 and $6.5 support as this level could assist buyers to replenish the bullish momentum.

In addition, the sidelined traders could enter at the aforementioned support if the prices show sustainability above them.