Since September last year, Filecoin (FIL) has consistently lost its value on the charts. Buyers have been unable to drive a trend-changing rally for nearly nine months.
The dynamics of the current market are clearly in favor of bears. As a result, FIL was lowered to its all-time low on May 12.
After measuring the current signs, alt can continue the squeeze phase near its control point (POC, red). At the time of the press, FIL traded at $ 8.18, down 1.54% in the last 24 hours.
FIL daily chart
In the last eight months, FIL has lost more than 94.5% of its value and has fallen fairly rapidly towards the $ 6 to $ 7 range. Despite surpassing the six-month trendline resistance, the bear quickly found a fresh low and lowered the FIL below the current POC.
It is important to note that in the last 7 weeks, alt has not been able to cross the Bollinger Bands (BB) baseline (green). As sellers entered price discovery, recent moves have choked out bearish pennants in daily timeframes.
Not surprisingly, the slightly southward supertrend stayed in the red zone for a month. In addition to this, this fall, FIL fell to a record low of $ 6.7 on May 12.
In the future, well below the pennant, short-term losses could occur towards the $ 7.2 zone before buyers try to reverse the trend. Posting this, alt will continue to find enough buying pressure to overcome the POC constraints. Prices below $ 7.2 support drive further price discovery towards fresher lows.
The recent growth of the RSI has been accompanied by a bearish difference from price behavior. Indexes can be sluggish in the range of 26-34, even though buyers are willing to rejuvenate sales.
But on the positive side, the CMF has created a bullish divergence in the price valley. Therefore, capital inflows may see a continuous rise in the short term.
Looking at the current scenario 360 degrees, FIL could see a short-term setback before the buyer steps into the $ 7 zone to overturn the POC. Moreover, looking at the contrasting differences between the RSI and the CMF, the FIL may prolong its downturn before an unstable break.
Finally, keeping an eye on Bitcoin’s movements and broader emotions is important to complement the previous analysis.