Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The $4.25 immediate support was respected.
Open Interest rates and financing rates wavered.
Like most altcoins, Filecoin [FIL] has made an impressive recovery since mid-June. However, a well-known $5 roadblock has prevented any further increase. So far, FIL has suffered two price rejections on the hurdle, making it an entry zone for short sellers.
Read Filecoins [FIL] Price prediction 2023-24
Will the roadblock give sellers an entry point?
Source: FIL/USDT on TradingView
At the time of writing, FIL price action had recovered from the $4.25 immediate support and targeted the $5 roadblock. The $4.25 immediate support was a crucial lifeline for bulls in early January, May and July.
Also the roadblock, the D1 bearish order block from $4.68 – $5.03 (red), has frustrated bulls for a while. With muted BTC price moves below $30,000 and an incoming FOMC meeting, FIL could face another price rejection at the roadblock.
If so, the $5 roadblock could provide another short opportunity with a good risk ratio, targeting the immediate $4.25 support.
Conversely, removing the $5 hurdle will make the D1 market structure bullish and invalidate the above bearish statement. But FIL bulls need to get above $5.2 to gain more edge.
Meanwhile, the Relative Strength Index has fluctuated above the neutral level, indicating hesitant buying pressure in recent days. But On Balance Volume registered an uptick, indicating improved demand over the past few hours.
Open Interest and financing rates wavered
Source: Coinalyse
FIL’s Open Interest (OI) rates faltered in mid-July, but rose from July 19. It shows that demand in the futures market has improved over the same period. However, OI has hovered below $90 million since July 21, indicating stagnant demand over the same period.
How many Worth 1,10,100 FILs today?
Funding rates matched OI’s trend. Between July 21 and 22, there were significant swings in funding rates.
These stats could favor sellers with price action approaching key resistance at $5. But traders should follow BTC price action for the best optimized setups.
This post Filecoin: Will the $5 Hurdle Bring Another Shorting Opportunity?
was published first on https://ambcrypto.com/filecoin-will-the-5-hurdle-offer-a-shorting-opportunity/
