Filecoin (FIL) broke down from long-term diagonal and horizontal support levels.
Filecoin faces a critical resistance at $3, a breakout above which could signal a trend reversal.
Can Filecoin break out above this resistance, or will it get rejected and fall to new lows?
Filecoin is one of the few tokens whose price is pumping today, alongside Zcash (ZEC), DASH, Algorand (ALGO), and Internet Computer (ICP).
Despite the rally, the broader technical picture still looks grim, with FIL trading well below critical resistance levels after losing nearly 99% of its value since its 2021 peak.
All eyes are now on the $3 resistance level, which will indicate whether the rally is legitimate or temporary.
Filecoin’s Technical Analysis
The weekly time frame price action shows that the price of Filecoin has fallen significantly since its all-time high of $238 in March 2021.
Even with today’s bounce, the price of Filecoin has lost 99% of its value and now trades below several critical support levels that have become resistance.
This cycle’s Filecoin movement has been entirely corrective, creating an A-B-C correction that has lasted over a year.
Then, the breakdown from the ascending support trend line and the $3 horizontal area at the start of 2025 confirmed that the trend is bearish.
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The Moving Average Convergence/Divergence (MACD) looks promising because of its bullish divergence (orange), but the Relative Strength Index (RSI) does not corroborate this.
On the contrary, the RSI remains below 50 and has not generated a bullish divergence.
As a result, Filecoin may break out, but confirming a bullish reversal will be tough.
Why is Filecoin Going Up?
The daily time frame shows that FIL bounced after creating a double bottom pattern when discounting the long lower wick on Oct. 10.
On a daily basis, both the RSI and MACD indicators display bullish divergence, which has contributed to today’s price increase.
Currently, FIL is attempting to break out from a shorter-term diagonal resistance trend line that has been in place since the start of the year.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
