FIL bulls see massive surge in prices but can the rally extend even higher?

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.

• Filecoin noticed a wild pump of shut to twenty% over the previous few hours
• Patrons from decrease ranges can look to money of their earnings

Filecoin [FIL] has been in a downtrend on the each day timeframe since mid-April. However the previous 24 hours have been fascinating for sure altcoin bulls. FIL was amongst them because it surged 18% within the early hours of three July.

Learn Filecoin’s [FIL] Value Prediction 2023-24

The decrease timeframe construction and pattern have been bullish however the $5 degree offered a zone of resistance that is perhaps onerous for the bulls to breach on their first go. Right here’s the place cautious bulls can look to e book their earnings, and in addition the place the subsequent rally might start from.

The retracement after the market construction break gave a shopping for alternative over the weekend

Supply: FIL/USDT on TradingView

Usually, weekends see muted worth motion, though some weekends can see extraordinary volatility. The final weekend was a quiet one for FIL. The worth flipped the market construction to bullish on Friday, 30 June. Hours later there was a depraved downward candle wick that touched $3.56 earlier than rebounding to achieve $4.25 on July 1.

The On-Steadiness Quantity (OBV) took successful throughout this downward transfer, however the occasions since then have proven that purchasing quantity was far better than the promoting stress. The Relative Energy Index (RSI) entered the overbought territory, though this doesn’t sign a reversal was imminent by itself.

A set of Fibonacci retracement ranges have been plotted based mostly on the volatility seen on 30 June and 1 July. It confirmed the 50% retracement degree was at $3.91 and was nearly examined on 2 July. FIL dipped as little as $3.935 however started to climb greater.

Bulls can look ahead to a transfer downward earlier than on the lookout for purchase alternatives. A drop beneath the $4.26 degree could be an indication of bearish dominance, however a retest of the $4.38-$4.52 degree and a bounce might supply a shopping for alternative on the decrease timeframes. In the meantime, merchants already in a protracted place can look to e book earnings on the $4.7 mark itself, whereas extra bold bulls can look ahead to a foray into the $4.95-$5 area.

The swift downturn within the spot CVD prompt FIL sellers may very well be getting ready to reverse the rally

Supply: Coinalyze

The H4 worth chart indicators have been firmly on the facet of the bulls. The Open Curiosity on the one-hour chart from Coinalyze was additionally rising shortly alongside the Filecoin costs. General, this was an indication of robust bullish sentiment out there.

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But, the steep decline within the spot CVD over the previous 18 hours prompt that the sellers is perhaps getting ready the push the bulls again. This was a sign that demand was weakening and that patrons already ready can look to e book earnings.