FIL Price Analysis: Avid Rebound Reignites Upside Expectations

FIL price recovered from recent lows during the prior mid-week and continued to move higher over the course, pushing up prices to the $189 level.

*Mild dark spots in the short-term outlook weighing on its advance
*Avid rebound at $135.60 reinforces optimism on growth prospect
*On block 665280, Filecoin (FIL) network will hard fork to implement FIP-0014

Filecoin (FIL) price broke above the upper channel of the daily time frame on the 1st of April and has followed through the prior week with a mild pullback to the $135.60 level amid the Altcoin market correction. The mild pullback is not unusual and should not be a reason to call the end of the rally categorically. FIL/USD registered above the lows as avid rebound reinforces optimism on growth prospect towards its recent all-time high at $237. However, Filecoin’s optimism was tempered by the supply zone around $187 to $193 levels as dark spots in the short-term outlook weigh on its advance. At the time of writing, FIL/USD is hovering around $176 with Filecoin’s growing use case supporting FIL’s large valuation of $11.50B and its position as a top 14 crypto asset. The asset has gained more than 1.5% with an increased trading volume of about $3.18B in 24hrs.

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Binance To Support Filecoin’s Forthcoming Hard Fork

On April 12, 2021, Filecoin (FIL), a decentralized file-sharing network, will experience a hard fork. Binance (BNB), a cryptocurrency exchange that accounts for nearly 15% of Filecoin (FIL) trading volume, has announced that it will support the Filecoin (FIL) network upgrade. The Filecoin (FIL) network will trigger a mandatory update on block 665280, which is expected to be added on April 12, 2021, at 10:00 p.m. (UTC). Filecoin Improvement Proposal (FIP) 0014 will be implemented, as well as the network structure will be updated to version 11. Binance (BNB) will suspend deposits and withdrawals on April 12, 2021, at 4:00 p.m. UTC, to ensure a smooth transition. FIL pair trading will be unaffected.

FIL Daily Chart: Ranging

FIL/USD Daily Chart

Filecoin markets seem to be heeding the hard fork update and that it’s too soon to be at the highs prompting a bit of a pullback in price during the prior week to $135.60 level, particularly trading beneath the confluence zone around the $187 to $193 region. Market sentiment is likely to receive a notable boost if Filecoin’s growth indicators are as strong as being predicted.

The price beneath the all-time high of $237 indicates that a rally will hold towards the resistance zone at $205.84 where a break may usher in fresh all-time highs. At the same time, several factors warrant caution. FIL/USD scanty historical support zones may fail to hold any bearish pressure towards the moving average (MA 50) at $90 while the relative strength index moving beneath the overbought zone signals a descent into the consolidation phase.

FIL 4-Hour Chart: Ranging

FIL/USD 4-Hour Chart

On the 4-hour time frame, the initial resistance lies around the high of yesterday at the $189.00 levels, next is $205.84 level and eventually the $237 all-time high level. The all-time high of $237 level could be the next target, and if this gets violated, resistance could then develop around the $300 barriers.

Support is seen at $160 levels initially, followed by the rebound zone of $135.60 level, with the lower end of the channel now ideally aligning with the ascending trendline support at $135.60 levels holding to keep the immediate risk lower. A break can see a deeper pullback to $119.67 levels, but with fresh buyers expected ahead of stated lows.

Key Levels
Resistance Levels: $300, $237, $180
Support Levels: $160, $135, $119

Image Credit: Tradingview

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editorial staff