Filecoin (FIL) Price Eyes $6: Reasons Behind the Forecast

4 months ago 48

Despite closing near a weekly low, Filecoin (FIL) exhibits signs of recovery contrary to market sentiment. Trading at $5.38, FIL has lost 16.31% of its value over the past seven days.

From an on-chain standpoint, the token may be unable to revisit its all-time high. However, indicators reveal that a run to a higher price looks feasible.

Filecoin Volume Falls

BeInCrypto evaluates Filecoin’s volume. Volume refers to the value of cryptocurrency traded within a given period, including both buying and selling. As of this writing, FIL’s volume was $134.97 million, down from a peak of $899.10 million on June 8.

Typically, rising prices and rising volumes indicate strength for the uptrend. However, a falling price and a declining volume suggest that sellers are getting weak and exhausted. Therefore, a reversal to the upside may be near for FIL.

The technical overview of the token on the daily chart shows that a buy signal may have appeared. This is because of the indications shown by the Tom DeMark (TD) Sequential. The TD Sequential is a technical tool designed to spot trend exhaustion and potential price reversal.

In a bearish setup, the last candle closes lower than the four before. However, a bullish setup appears if the last candlestick closes higher than the previous four, and that was the case with FIL.

FIL Price Prediction:

Furthermore, the Money Flow Index (MFI) gave credence to the forecast. The MFI reading is between 0 and 100. It measures buying and selling pressure and also spots overbought and oversold regions.

When the MFI drops below 20, it means a cryptocurrency is oversold. On the other hand, a reading above 80 means the asset involved is overbought. On June 12, the MFI was in an oversold region, suggesting that liquidity had flown out of the FIL market.

However, as of this writing, the reading has increased. This means that buying pressure is increasing, which may lead to a price increase.

What targets can Filecoin’s price reach? For one, the cryptocurrency’s price may not be near the value it reached in February. However. the Fibonacci Indicator can tell where support and resistance lie, which will help spot possible price levels for FIL in the short term.

If the bullish setup is validated, FIL may produce green candlesticks lasting one to four days. If this happens, the price target will be around $6.07. The Awesome Oscillator (AO) also backed this.

The AO shows measures if momentum is increasing or falling. As of this writing, the AO reading shows that Filecoin is exiting the bearish momentum. Should the reading rise to the positive region, the $6 prediction may come to pass.

However, traders should watch the $5.77 resistance, where the $0.786 Fibonacci Retracement is. Failure to break through this resistance may invalidate the prediction. As such, FIL may drop to $5.31.

The post Filecoin (FIL) Price Eyes $6: Reasons Behind the Forecast appeared first on BeInCrypto.

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