The Filecoin price continues to trade within a narrowing sideways range, but at some stage, that will change and is likely to bring a big move.
During the early April bull run, the Filecoin price got to the dizzy heights of $236.0000. The 1000% rally in the first 4 months of 2021 sent the coin flying up the crypto market cap charts.
Since the peak, the coin has given back -40%, and the Filecoin price is currently $144.7200 and struggling to find direction.
The price may have close to halved from the top. Nonetheless, the coin that was only listed on Coinbase in December has achieved a market cap of over $10 Billion in that short time.
Filecoin Price Outlook
Looking at the 4-hour chart, we see that Filecoin has been trading in a volatile trading band since peaking on the 1st of April. I’m sure there is a joke in there about fools paying the top, but I’ll leave it.
When a market experiences a narrowing range and decreasing volatility, it usually precedes a breakout.
Presently, the Filecoin price is capped on the upside by an ascending trend line at $160.0000 from the April 16th high.
Supporting the price is an ascending trend line which sits at $136.000. This links the 28th of March low with a series of lows in April.
Until the market can break out of this formation, the likeliest scenario is sideways. But when it breaks, I expect to see a material move.
If the price breaks to the upside, there is the potential for a 20% increase to $192.6400. This was the highest point achieved on the 14th of April.
The downside break would offer traders slightly more value as there is potential for a 27% decline.
This would see the Filecoin price back to its previous all-time high of $89.87500 from March the 18th.
For the moment, traders should keep a close eye on the market to jump on momentum when it comes.
Don’t miss a beat! Follow us on Telegram and Twitter.
Filecoin Daily Chart
Follow Elliott on Twitter.