Capped by a strong downtrend, the Filecoin price on its second-worst run of 2021. It may just be a matter of time before FIL bulls are forced to tap out.
Filecoin is last trading at $59.99, down $3.12 (-5.0%) .
The last time FIL was down for 7 days in a row was back in April when it fell from $195.40 to $127.80, losing 36% in a week.
This report could be about several altcoins. The story is the same.
(Insert name here) experienced a parabolic rally between January and April. Following Bitcoin and, latterly, Ethereum’s gains at the start of the year, attention turned to their smaller peers. Investors piled into altcoins, triggering a bull run akin to the crypto bubble of 2017.
(Insert name here) reached a high of (..x…) in (either April or May) and has since lost (insert 70 or 80%) of its value.
This is not to be facetious. It just illustrates how the Filecoin price is less to do with Filecoin and all to do with the sentiment surrounding the cryptocurrency market.
In theory, Filecoin is a great idea. Decentralized data storage is a noble cause. However, it pits Filecoin against the world’s largest tech giants. Therefore, it will take a resurging crypto market to support this monumental task.
Sadly, the Altcoin spring is currently in the grips of a nuclear winter.
FIL Technical Outlook
The daily chart shows a commanding downtrend in place from the April high. Several attempts to break above the trend have failed, and in the last week, FIL has been magnetized to this restrictive barrier.
Below the market, some critical horzontal support levels can be seen.
First comes the 9th of Feb high at $53.97, around 10% below the current price.
Following, and more importantly, the May 19th ‘crypto crash’ low at $47.72 should be considered a must-hold level. If the price fails to maintain this support, the next reprieve for bulls is a long way down at $29.80, cutting the Filecoin price in half from here.
However, it’s always darkest before the dawn, and the sentiment is so bad that FIL could surprise with an upside breakout at the first positive sign. Therefore a break above the trend line at $64.20 would alleviate some of the downside pressure and cancel the immediate bearish outlook.
However, without a sustainable bullish narrative returning to the market, the downside will remain favorable.
Filecoin price daily chart
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