The Filecoin price has been in a narrow range in the past few days as investors assess the health of the industry. After crashing to a multi-month low of $6.37 last week, the FIL coin has jumped by more than 34% to the current $8.54. As a result, the coin’s market cap has risen to more than $1.7 billion, making it the 42nd biggest cryptocurrency globally.
Filecoin is a leading blockchain that is seeking to become a player in the decentralised storage industry. Using the network, anyone with free storage in their computer can provide storage to the network and make money whenever people use the storage. As a result, the platform has been widely embraced by many developers to store and retrieve their data.
The Filecoin price has moved sideways in the past few days after experiencing a strong crash last week. The crash happened due to fears of contagion as Terra LUNA, Terra USD, and other platforms in the ecosystem declined sharply. This performance is in line with what other digital assets have performed in the past few days. For example, Bitcoin has been stuck at about $30,000 since Friday last week.
We see that the FIL price has been in a tight range on the daily chart in the past few days. The coin is trading at $8.42, where it has been in the past few days. It has dropped below the 25-day and 50-day moving averages, signalling that the bearish trend is still intact. Notably, the coin has formed a bearish pennant pattern that is shown in blue. Ideally, a bearish pennant pattern is usually a sign that a sell-off will happen.
Therefore, while it is still early to tell, there is a likelihood that the Filecoin price will have a bearish breakout in the near term. If this happens, the next key support level to watch will be last week’s low at $6.30. However, a move above the upper side of the pennant at $9.68 will invalidate the bearish view.
This post was last modified on May 18, 2022, 09:13 BST 09:13