FIL bulls face rejection at $3.4, can traders expect more losses in coming days

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion

• The $4 mark was an essential degree of assist that was misplaced final week
• Filecoin traded simply above one other psychological degree at $3 however may face extra bearish stress quickly

The core CPI knowledge from the US Labor Division final week noticed a transfer upward to $18k for Bitcoin, however these features had been rapidly worn out. Inventory market indices comparable to S&P 500 posted losses final week and had been prone to proceed trending decrease this week.

Filecoin suffered from intense promoting stress and registered giant losses on the value charts.

Learn Filecoin’s [FIL] Worth Prediction 2023-24

If Bitcoin can push previous the $17k mark as soon as extra, there may very well be possibilities of a small rally throughout the market. Nevertheless, endurance was essential. Buying and selling on 19 December would seemingly make clear the momentum for belongings within the coming week.

The $4 assist was damaged decisively, bears euphoric

Supply: FIL/USDT on TradingView

A set of Fibonacci retracement and extension ranges (yellow) was plotted based mostly on FIL’s transfer from $6.56 to $4 in early November’s crash. From 10 November to 16 December, Filecoin fashioned a variety between $4.07 and $4.6.

On 14 December, FIL retested the $4.38 area as resistance and fell almost 30% to achieve $3. Up to now couple of days, volatility and buying and selling quantity have been low.

The Fibonacci extension ranges offered $2.72 and $2.41 as bearish targets additional south. In the meantime, the 23.6% extension degree at $3.39 was nearly retested as resistance. The Relative Power Index (RSI) was strongly bearish and remained in oversold territory over the previous couple of days.

A bearish divergence close to a decrease timeframe vital degree can supply merchants a chance to scalp. The Chaikin Cash Movement (CMF) weakly climbed in current days however regarded to dive beneath -0.05 as soon as extra to point heavy promoting stress.

A transfer beneath $3 may see Filecoin drop to $1.44 within the coming weeks, the 100% Fibonacci extension degree based mostly on the aforementioned drop from $6.56.

Open Curiosity witnesses a pointy decline alongside robust bearish momentum for the value

Supply: Coinalyze

Over the weekend, the Open Curiosity noticed a pointy decline to point the liquidation of lengthy positions. The sentiment was bearish and the funding rate was additionally unfavourable over the weekend. Liquidation knowledge from Coinalyze confirmed $4.98m price of lengthy positions liquidated when Filecoin dropped from $4.15 to $3.02 on December 16.

The technical charts confirmed a bearish bias as momentum and market construction favored the sellers. Futures market individuals weren’t hopeful of a restoration for Filecoin anytime quickly both. If FIL can reclaim $3.4, this might see a change in decrease timeframes. The longer-term development remained closely in favor of the sellers.