The Filecoin price has finally broken out of its narrowing range. However, the uninspiring reaction has left the FIL bulls feeling deflated.
Filecoin is trading at $60.76, down $3.89 (-6.03%).
Filecoin is currently ranked the 24th largest crypto asset, with a market cap just north of $5 billion.
My report on the 21st discussed the negative outlook for the Filecoin price as long as it remained below an imposing descending trend line.
FIL did go on to lose 34% after the reports’ release. However, it has since clawed back all of those losses and has broken the trend line’s resistance.
The trend begins at the 1st of April’s $239.90 high. And up until Saturday, FIL had never finished a day above the line.
The nature of a descending trend obviously dictates that it moves closer to the price as time moves forward. So on Saturday, when FIL eventually crossed above the trend at $53.0, it was less of an explosion higher and more of a skip, resembling someone hopping of the escalators.
Although, you could argue the break took FIL higher by 25%. Considering the intensity of comparable breakouts in other cryptos, it is less than impressive. For example, Ethereum Classic broke out of a similar pattern yesterday and jumped 50% in 24 hours.
Additionally, it took three days for the Filecoin price to gain 25%. And finally, it has now given more than half of that back.
This is not encouraging.
Just below the market, we see horizontal support at $53.97. Furthermore, the once restrictive trend now offers support at $46.00. Therefore, FIL must maintain a value above $46.00. A close below would prove very disappointing for the bulls. Furthermore, it would indicate a false breakout and possibly result in a visit to the horizontal support seen at $29.80.
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