Filecoin (FIL) price has been in a tailspin since breaking below the $4.82 level on its chart. The latest analysis reveals that the bears are constantly gaining momentum and may soon target fresh lows. At the time of writing, FIL crypto is 98.62% down from its all-time high.
On Friday, cryptocurrencies experienced a bearish sentiment as the BTC price couldn’t break above its $26,500 resistance. The leading cryptocurrency is again hovering around the $26,000 level as the bulls failed to gain momentum. Filecoin also extended its weekly gains on Friday, and the price was down 0.82% till press time.
Filecoin was launched at the start of the last crypto bull run. In the following months, it became one of the best-performing digital assets, generating ridiculously high returns for its holders. However, the project lacked the adoption, which didn’t justify its insanely high valuation.
Consequently, Filecoin price tanked really hard in the bear market and is trading only at a fraction of its 2021 all-time high. The network adoption is still way behind other layer 1 protocols. This makes a significant recovery highly unlikely.
A look at the following FIL price chart reveals that the price has broken below the $4.82-$11.45 trading range. This trading range had been acting as a massive accumulation zone since June 2022. An acceptance below this trading range has flipped Filecoin price prediction extremely bearish.
The most likely scenario appears to be a retest of the $2.40-$2.70 level in the coming months. To avoid this bearish outlook, the price needs to reclaim the range lows of $4.82, which may now act as a major resistance. The Bitcoin price action in the coming months would also be affecting the price action of Filecoin in the coming months.
I’ll keep posting my updated outlook on FIL coin on my Twitter, where you’re welcome to follow me.
This post was last modified on Aug 25, 2023, 13:26 BST 13:26