Filecoin may not recover soon | Credit: Veronica Cestari
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Key Takeaways
On the 4-hour chart, FIL trades in a symmetrical triangle, pointing to a likely breakdown.
The AO sits below zero, BBP remains negative, and CMF at -0.22 reflects capital outflows.
FIL is unlikely to clear $2.39 to $2.70 hurdle, as the Supertrend indicator remains bearish.
FIL, the native token of the decentralized storage system Filecoin, could be set to hit its all-time low again. This comes as the token’s price action shows little to no signs of strength.
On a Year-to-date (YTD) basis, FIL has shed 55% of its value. While such a correction might present a buying opportunity, multiple indicators suggest otherwise.
In this analysis, CCN reveals why Filecoin could see an extended downtrend.
FIL Struggles With Heavy Sell Pressure
On the 4-hour chart, Filecoin’s price is consolidating within a symmetrical triangle, a pattern that forms when price action compresses between a series of lower highs and higher lows.
Typically, this setup reflects a period of indecision, as buyers and sellers battle for control.
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However, a closer look at the chart shows that FIL is on the verge of breaking below the triangle’s support line. If this breakdown occurs, it would invalidate the pattern’s neutral nature and likely trigger renewed bearish momentum.
In such a scenario, Filecoin’s price could slide toward its recent lows, with the risk of retesting its all-time low if selling pressure intensifies.
At the same time, the Awesome Oscillator (AO) has dropped below the zero signal line, indicating rising bearish momentum. Also, the Bull Bear Power (BBP) is in the negative region, suggesting that bulls have taken the backseat.
Hence, if sustained, FIL’s price is unlikely to breach the resistance at $2.39. Instead, the market value risks falling to $2.25.
Conversely, a bounce off support would keep the consolidation intact, but without stronger demand, the odds currently favor a bearish resolution.
FIL Price Prediction: New ATL Ahead
On the daily chart, Filecoin’s price also presents a bearish outlook. The token has yet to break above its upper resistance line, signaling buyers lack the strength to reclaim momentum.
Adding to the downside risk, the Chaikin Money Flow (CMF) has slipped below the zero signal line, currently sitting at -0.22. This reading reflects sustained capital outflows, reinforcing the bearish sentiment around FIL.
On top of that, the red line of the Supertrend indicator is positioned above the price, reinforcing the bearish bias and suggesting that FIL may struggle to mount a meaningful recovery in the near term.
As long as this remains the case, Filecoin’s price might face rejection if it attempts to break the resistance at $2.70. If that happens, the altcoin’s next target could be a drop to its all-time low at $1.96.
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.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
