Filecoin (FIL) In Bearish Clutch, But May Easily Escape And Recover

It isn’t easy to break free from a bear’s clutch, but Filecoin (FIL) has its ways.

  • FIL prices are performing well, despite bearish grip
  • Recessions in price by 8.6%
  • RSI, CMF have a selling edge and bearish behaviour.

FIL rebounded from the $5-mark by putting an end to the excessive selling. The coin made a comeback, but was still somewhat held back by bears.

FIL moving in accordance with its 20/50/200 EMA movement, FIL shows a fairly slow or steady trend. It could be that this is the beginning of a new session. Now, if FIL won’t manage to hang on to the $5 baseline, the altcoin may likely be pulled further down.

CoinMarketCap reports that FIL is currently trading at $5.70, a decline of 8.06% as of the writing.

FIL Bulls Are Determined To Protect The Baseline

FIL fell to its record low of $7.35 on June 18th. Bulls have been keen to protect the $5 base. A short breach of $7.35 that was above the $5 baseline was definitely an opportunity, particularly with bullish momentum. However it was very good for a while.

Chart: TradingView.com

The flipside is that the Altcoin plunge below the 50 and 20 EMAs has triggered a bullish invalidation, as the altcoin appears to be having difficulty breaking the 5-week resistance zone. Filecoin’s selling potential is evident by a bearish crossover between the EMAs.

A dull region may be close to FIL’s POC or Point of Control as seen in the $5.6 zone. The FIL bulls should be strong enough to overcome the resistance at this point.

There might be some difficulties in recovering altcoin in the $6-7 range. This could become evident during the next session.

FIL Resilient Despite Bearish Grip

RSI Filecoin’s has shown a selling edge, and dropped from its midline position. CMF also shows bearish tendencies after falling below its zero limit.

Additionally, DMI lines were also shooting for a bearish crossover but Filecoin’s ADX continues to show a weak directional trend.

The breakout under the 20/50 EMAs and the strength shown by the 5-week key resistance could be taken as a sign that sellers are ready to set recovery barriers for the following sessions.

Investors and traders need to be more aware of how the BTC/ETH movement impacts FIL, and any other altcoins before making any decisions.

FIL’s track record has been impressive. FIL actually saw an increase of 2.74% on September 2. This shows that the altcoin is capable of holding its own despite the bearish grip.

FIL's total market capital is $1.4 billion according to the daily chart. Source : TradingView.com| Source: TradingView.com
Featured image by Invezz. Chart from TradingView.com

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