Filecoin Cruises Near Resistance, Now Attempts For A Breakout

The price action for Filecoin (FIL), shows a formation of a pole and flag pattern, which indicates a bullish move.

  • The Filecoin price is in a strong uptrend, with a bullish flag pattern and pole pattern.
  • Filecoin’s four-hour period showed that a triangle pattern of symmetrical shapes was formed.
  • Filecoin trades in a longer-term supply area following the breach of key resistance short-term

 Currently, Filecoin price trades at a long-term supply level after successfully breaching a short-term key resistance.

FIL prices had been in convergence since before the breach. The breach of supply has had a significant impact on the bullish trend, which was already strong.

Filecoin Shows a Strong Upward Movement

FIL’s bullish trend has seen the price consolidate once more, creating both higher high and lower low patterns on a daily basis.

CoinMarketCap says that Filecoin’s price is highly bullish at $8.55 and has experienced a surge in value of 0.69%.

FIL coin prices have breached 50 and 100 EMAs, as per press time. After failing to exceed the upper bands, FIL coin is currently trading at mid-range of Bollinger Band indicator. In addition, the breach also saw an increase in the trading volumes.

Investors are advised at this stage to be alert for signs of a break in the bullish pole and flag pattern and to act quickly.

The FIL price will rise once it reaches flag, pole pattern

In a 4 hour timeframe, it’s observed that the FIL coin prices form a symmetrical triangle. The ADX curve has also spiked on a higher time frame as it moves in sync with the coin’s uptrend which hints at a rally in FILE coin price.

Based on the daily time frame, it is evident that the ADX curve has moved upwards from the previous 20 levels. The coin has been spotted in the current short-term demand zone on 4-hour fame. Investors need to await the formation of positive candles in this demand area.

FIL coin’s RSI is showing trading activity at the 50.41 mark. Its RSI shows a cross-over on all 50 zones. Surprisingly, FIL’s coin price demonstrated a breach in a strong supply area. If the FIL coin price breaches the bullish flag or pole pattern, then the RSI will quickly move upwards. The RSI curve shows the coin price has crossed 14 EMA, which is a sign of a bullish move that will be short-lived.

These indicators of Supertrend are very positive, particularly with the breaking of the crucial small-term supply marker as observed on the daily timeframe which also led to the continued rally in coin prices.

 Source: TradingView.com| Source: TradingView.com

Featured image taken from Binance Academy. Chart taken from TradingView.com

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