Filecoin (FIL) Slides 8%: Can Support Hold or Will Bears Push the Price Below $5?

• Filecoin (FIL) lost 8%, slipping to $0.85.
• Trading volume has exploded by over 112%.

With the market sentiment remaining in the fear zone, the crypto assets are oscillating between red and green. Meanwhile, Filecoin (FIL) has faced a series of sharp corrections, with the price moving up and down recently. It has been navigating in a tight range, hinting at indecision among the traders.

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As of today, Filecoin has posted an  8.91% loss in value, and at the time of writing, the asset is trading within the $0.8595 range, showing a steady fall. Besides, the daily trading volume has exploded by over 112% to $200.22 million. The Coinglass data has reported that the FIL market has seen a liquidation of $1.46 million.

The active bears in the Filecoin market might push the price to find the nearest support at around $0.8249. Further correction on the downside could trigger the death cross and send the price below $0.7921. If a bullish reversal takes place, the FIL price could likely climb to the resistance at the $0.8874 range. With the upside pressure intensifying, the golden cross might pop out and drive the price above the $0.91 mark. 

Bearish Signals Emerge in Filecoin’s Technical Setup

The recent technical chart of the FIL/USDT pair exhibits that the MACD and the signal line are below the zero line, which indicates bearish momentum. The recent price action is weaker, and it is in the weak phase. For the trend to improve, the lines need to move above zero. 

(Source: TradingView)

In addition, the CMF indicator at -0.30 suggests very strong selling pressure. This deep negative value shows that capital outflow is significantly higher than inflow. Notably, it exhibits heavy distribution, and if it stays this low, Filecoin may continue facing downward pressure. 

FIL’s daily Relative Strength Index (RSI) of 25.10 implies its oversold zone. The selling pressure has been very strong, pushing the price down sharply. Such levels can lead to a short-term bounce. Moreover, the Bull Bear Power (BBP) reading of Filecoin -0.101 signals moderate bearish dominance. A move further into the negative territory strengthens the ongoing bearish momentum.

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