The Filecoin price has finally broken out of its narrowing range. However, the uninspiring reaction has left the FIL bulls feeling deflated.
Filecoin is trading at $60.76, down $3.89 (-6.03%).
Filecoin is currently ranked the 24th largest crypto asset, with a market cap just north of $5 billion.
My report on the 21st discussed the negative outlook for the Filecoin price as long as it remained below an imposing descending trend line.
FIL did go on to lose 34% after the reports’ release. However, it has since clawed back all of those losses and has broken the trend line’s resistance.
FIL price forecast
The trend begins at the 1st of April’s $239.90 high. And up until Saturday, FIL had never finished a day above the line.
The nature of a descending trend obviously dictates that it moves closer to the price as time moves forward. So on Saturday, when FIL eventually crossed above the trend at $53.0, it was less of an explosion higher and more of a skip, resembling someone hopping of the escalators.
Although, you could argue the break took FIL higher by 25%. Considering the intensity of comparable breakouts in other cryptos, it is less than impressive. For example, Ethereum Classic broke out of a similar pattern yesterday and jumped 50% in 24 hours.
Additionally, it took three days for the Filecoin price to gain 25%. And finally, it has now given more than half of that back.
This is not encouraging.
Just below the market, we see horizontal support at $53.97. Furthermore, the once restrictive trend now offers support at $46.00. Therefore, FIL must maintain a value above $46.00. A close below would prove very disappointing for the bulls. Furthermore, it would indicate a false breakout and possibly result in a visit to the horizontal support seen at $29.80.
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Filecoin price chart (Daily)
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