Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice

Is it a range or is it a consolidation? Was Filecoin’s Short Term Price Action Bullish or Bearish? The short-term market structure, which had previously been so bullish, has appeared to fluctuate over the past three days. The indicators showed bearish momentum and rising selling pressure behind Filecoin. A bullish pattern was visible in the charts, but at the same time there was no evidence of strong buying pressure.

FIL-1H

Source: FIL/USDT on TradingView

So many questions. On higher time frames, the pattern looked like a bullish pennant pattern in the making that would only be confirmed on a breakout upwards. As the old saying goes, when in doubt, zoom out.

The visible range of the volume profile showed that the POC was at $24.6. At the time of writing, the price fell below the Value Area Lows, indicating that the asset was underpriced based on the volume profile over the past ten days.

Filecoin was trading at $24.16 at the time of writing. It has also formed a symmetrical triangle pattern (white), but if we consider the movement from $18.9 to $27.8 as the flagpole, then a pennant pattern could form.

rode

Source: FIL/USDT on TradingView

On the downside, a move below USD 23 would indicate that the pennant pattern was invalid and the market had turned bearish. Short term momentum indicators were bearish as they reacted to a drop in the FIL from $26 to $24.1 in just over a day.

The RSI stood at 37 while the Awesome Oscillator also painted red bars on its histogram to show a bearish momentum rising. The CVD has also been in the red in recent hours in response to selling pressure.

Conclusion

Bitcoin plunged from $46k the previous day, and it may be that Filecoin was reacting to the short-term fears in the market. Therefore, unless $23 is handed over to the bears, the bulls had a chance to fight. In contrast, a move past $26.4 could signal the beginning of a bullish move towards $32.



This post Decode whether Filecoin extends, compresses or retracts

was published first on https://ambcrypto.com/filecoin-ranging-compressing-or-pulling-back-here-are-some-ways-it-could-resolve/

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