Filecoin: Will herald an uptrend in the coming months

Filecoin (FIL) has lost most of its value sharply over the past year since its peak in April 2021. Over the past six months, bulls have barely begun a sustainable rally and succumbed to the prolonged bearish trendline resistance (white, dashed).

The alt was now looking to enter a tight phase in the $18-$20 mark before retesting its critical support and making a trending move. At the time of writing, FIL was trading at $18.38, down 2.37% in the past 24 hours.

FIL Daily Chart

Source: TradingView, FIL/USDT

In the past year, FIL lost over 92% of its value and witnessed a fairly rapid decline. The alt has seen two descending triangles in the past six months as the bears showed their one-sided dominance. As a result, it fell below its short term EMAs while forming solid trendline resistance. Not surprisingly, the Supertrend has remained in the red zone since September last year.

With the recent drop, FIL plunged to its all-time low on Feb. 24 at $16. Sellers have pushed the spikes lower as buyers try to cope with the $18 support.

From now on, immediate support is going to be the main price point for the bulls. If the price finds a close above this level, it would most likely enter a squeeze phase between the $18-$20 range before falling further back. Any close below the $18 mark would trigger a sell signal as the bears could try to find newer lows.

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Source: TradingView, FIL/USDT

The RSI has fluctuated sideways as the price marked lower highs. This reading kept hopes of a bullish rebound off the $18 mark. The immediate trendline support at the 36 sign would be vital for the bulls to defend.

The MACD has taken quite a step back as the histogram broke below the zero line while the lines were on the brink of a bearish crossover.

Conclusion

FIL was really walking on thin ice now. The buyers need to hold onto the $18 support to avoid a major fallout. In that case, it would likely be a short-term tight phase around its Point of Control before the alt falls back into its long-term trend.

Additionally, it would be important to keep an eye on Bitcoin’s movement and broader sentiment to complement the aforementioned analysis.

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