Filecoin is a decentralized protocol that enables anyone to rent out spare storage space on their computer. Likewise, anyone can buy storage on the network.
By allowing anyone in the world to join the network, it can create a huge source of data storage.
Past Performance in FIL
The opening price of FIL on February 16, 2021, was $42.97. The closing price of FIL as of February 22, 2021, was $39.39. Thus, the price of FIL has dipped by approximately 8% in the past week. It broke a resistance level of $34 in December 2020.
In the last 24 hours, the FIL price has been trading between $32.32-$43.32.
How Days Look Ahead for FIL
This morning, the opening price of FIL was $39.42. Currently, FIL is trading at $36.15. Thus, the price is downtick.
The A/D indicator has been not been very volatile. It is upward sloping indicating high demand for FIL. The OBV indicator dipped slightly but started rising again. Overall, buying pressures are higher than selling pressures. So, with increasing distributions, we can expect the price to go up.
The RSI is at 51%. It has frequently rallied from the 30% mark but facing a stiff bearish swing rejection at 60%. Thus, the market momentum looks bearish. The stochastic oscillator has gone below the 20% mark into the ‘oversold’ region. It is a good time for swing traders to go long. At present, heavy sell-offs will exert downward pressure on the FIL price.
The MACD and signal lines are negative. However, they are all set to turn positive. Thus, we can expect a trend reversal or an intermittent price rise. A bearish crossover by the MACD line over the signal line implies that bearish forces are still strong.
The AO indicator has just turned positive, but ‘buy’ signals are very weak. However, a trend reversal is on the horizon as most of the oscillators are turning positive.
The ADX indicator is falling indicating that the bearish momentum is still strong. Moreover, the price is again going towards the lower Bollinger band. The 20-day SMA line is unable to act as strong support for the price. Hence, we can expect the price to downswing.
To sum up, there are intermittent price rises amidst a bearish trend. Price corrections are occurring in the FIL market. The price has tested the 38.2% FIB retracement level of $36.52 and fallen below it. The price is likely to fall below the 23.6% FIB retracement level of $34.92 in some time.
The current price is below the Fibonacci pivot point of $38.34. By the end of the day, we can expect the price to fall below the first and second Fibonacci pivot support levels of $34.14 and $31.54 respectively. As of now, the bears are stronger than the bulls. Hence, the price will continue to fall tomorrow as well.