Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
FIL reached a bearish OB on the daily chart below $5.
Open interest rates stabilized; buying volumes fell.
Filecoin [FIL] has entered familiar territory and a repeat of a previous trend could force bulls to exercise patience in the near term. Since mid-June, FIL has made higher lows with the same highs, with a rising triangle pattern. The likely price reduction points to a likely breakthrough for FIL.
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In the meantime, Bitcoin [BTC] reached a new high on July 13, but was declining at the time of writing and threatening to drop below $30k. However, bulls have been defending the $30k for some time and could come through again.
Will bulls succumb to this roadblock?
From the point of view of the chart’s technical indicators, a price pivot was likely. The Relative Strength Index (RSI) and On Balance Volume (OBV) registered a decline, suggesting that buying pressure and demand eased somewhat.
On the price chart, the four-hour chart showed that FIL was in familiar territory – a bearish order block (OB) at $4.74 – $5.20 (red) on the daily chart (D1). FIL was rejected at the bearish OB in early July, dragging it into rising trendline support (white).
If the trend repeats, FIL may drop to the ascending trendline support. In addition, a price imbalance, the Fair Value Gap (FVG) of $4.28 – $4.43 (white), is adjacent to trendline support. Thus, the confluence area could be a crucial bullish zone.
A positive price reaction in the above bullish zone could lead FIL to retest the bearish OB of $4.74 – $5.20 and offer a good risk-reward ratio.
A break below the ascending trendline support will invalidate the bullish position.
Open interest rates stabilized, but…
On Coinalyze’s hourly chart, Open Interest (OI) rates rose from $80 million to $90 million during the massive price pump in the past few hours. However, the OI stabilized around $90 million, showing that demand remained steady after FIL hit the sub-$5.0 roadblock.
How many Worth 1,10,100 FILs today?
Similarly, the Cumulative Volume Delta (CVD) moved south, reinforcing that buy volumes declined significantly as sellers gained leverage over the roadblock. If the trend continues, bulls may re-enter the FVG confluence area and rising trendline support.
This post Filecoin [FIL] hits a known roadblock – Bulls can re-enter here
was published first on https://ambcrypto.com/filecoin-fil-hits-a-familiar-roadblock-bulls-can-re-enter-here/