The Filecoin price rebounded on Wednesday as demand for the cryptocurrency bounced back. FIL is trading at $42, which is about 27% above the lowest level this week. It is still about 65% below the highest level this year.
Filecoin is a relatively fast-growing blockchain project that is in the storage industry. The platform is used widely by most blockchain projects to handle its storage tasks. It is used by NFT companies as a viable storage option. Metaverse companies also use its storage solutions.
The Filecoin price has struggled in the past few days as investors remained concerned about higher interest rates. In a statement last year, the Fed Chair hinted that the bank will move faster when it meets in the coming week.
Filecoin price prediction
The four-hour chart shows that the FIL price has bounced back in the past few days. The coin rose above the key resistance at $41.7, which was the neckline of the small inverted head and shoulders pattern. The coin is also hovering at the 23.6% Fibonacci retracement level. It has also attempted to move above the 25-day moving average.
Therefore, because of the small H&S pattern, I suspect that the price will rebound and hit the 38.2% retracement level at about $47. This price is about 13% above the current level. A drop below $38 will invalidate the bullish view.