Filecoin’s native token, FIL, is experiencing a decrease in buying pressure, potentially jeopardizing its recent gains. The token has been trading within an ascending channel but now shows signs of weakness as it nears the channel’s lower boundary. This situation could lead to further decline unless there is a resurgence in market sentiment.
Current Status of Filecoin
Since July 4, FIL has been moving in an upward channel, typically a sign of growing prices. This channel has faced resistance at $5.05 and has support at $4.37. On July 23, FIL made an unsuccessful attempt to break through the resistance, resulting in a price drop. At the time of writing, FIL stands at $4.44, with declining buying pressure as it approaches the support level.
The Relative Strength Index (RSI) for FIL indicates potential movement below the support level. Although the RSI remains near 50, it reached this level after a downward trend, suggesting reduced buying interest.
What Will Be the Price of FIL?
On-chain data signals a negative trend for FIL, capturing the attention of investors. According to Santiment, the weighted sentiment is -0.04, reflecting general market uncertainty and doubt. Such sentiment typically correlates with further market declines.
Concrete Insights for Investors
Investors should consider the following points:
- Monitor FIL’s support level at $4.37 closely.
- Watch for any changes in the RSI value near 50.
- Keep an eye on the weighted sentiment metric for signs of market mood shifts.
- Be prepared for potential price levels, either a drop to $3.25 or a rise to $5.28, depending on market sentiment.
If the negative sentiment and indicators persist, FIL might fall below its support level, reaching a nine-month low of $3.25. Conversely, if the trend reverses and buying pressure increases, the price could climb to $5.28.