Journalist
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Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
- Filecoin is missing a strong trend on the 12-hour and daily charts
- The price action based on a certain range showed traders in low-risk areas where they could buy and sell FIL
Filecoin [FIL] fell below the $3.3 mark on September 21 and the near-term price outlook turned bearish. Still, the higher timeframe price charts showed that the token did not have a strong upside over the past month.
How much is 1, 10 or 100 FIL worth today?
This lack of a trend was unlikely to change anytime soon. There were two areas of interest for swing traders to focus on and the FIL price action can be considered a range. What would it take to pull off a bullish breakout?
A sharp rebound from the $3 level marked some liquidity
Source: FIL/USDT on TradingView
On August 17, FIL fell to $3.03, a level marked by the white dotted line. The same level was tested on September 11, but the price did not close the 12-hour trading session below the $3 mark, although it fell to $2.95 before a bullish reversal.
At the time of writing, FIL’s market structure on the 12-hour chart was bearish, but weak, given the price action within the range over the past month. There was a bullish order block at $2.95-$3.07. There was also a bearish order block spanning $3.49-$3.55. So these are the two regions where traders can look for longs and shorts respectively.
The Relative Strength Index (RSI) was below the neutral 50, showing that bears had an advantage in terms of momentum. On-Balance Volume (OBV) saw local resistance, but a breakout would be encouraging for buyers, who may still wait for FIL to approach $3.
The Directional Movement Index (DMI) showed no significant progress. This emphasizes the reach-related nature of Filecoin since August.
There has been a clear decline in Open Interest in recent weeks
Source: Mint glass
From August 17 to 20, Filecoin fell below $3.6 and retested the same region as resistance, forming the bearish order block. Since then, Open Interest (OI) has moderated, although there were clear spikes for a few days.
Realistic or not, here is FIL’s market cap in BTC terms
From the OI we can deduce that speculators were not yet ready to bet aggressively on Filecoin. A breakout past $3.6 could see OI rise, but this could take days or weeks to materialize. In the meantime, traders could try trading the range.