Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- The pullback retest on the breakout level of $5.93 could tip bulls to target an overhead resistance.
- Development activity hit rock bottom, denting weighted sentiment.
Filecoin [FIL] broke above its $5.333 – $5.929 range but faced a hurdle at $6.186. After that, the breakout retreated, and the pullback retested the breakout level of $5.93, setting it into recovery.
At press time, the FIL’s value was $6.006, up 1.37% in the past 24 hours, according to CoinMarketCap.
Read Filecoin [FIL] Price Prediction 2023-24
Meanwhile, after U.S. CPI data, Bitcoin [BTC] consolidated in $29.79K – $30.42K. FIL may enter a consolidation, too, if bulls fail to move forth. However, a retest of the price ceiling of $6.5 could attract selling pressure.
Is the recovery sustainable?
Source: FIL/USDT on TradingView
On the 12-hour chart, the RSI (Relative Strength Index) rose, faltered then surged again. It shows buying pressure wavered, but the structure was bullish at the time of writing. Similarly, the OBV rose but fluctuated afterward – demand wavered in the same period.
As such, FIL may consolidate within $5.93 – $6.186 if BTC’s sideways structure persists. But FIL could aim at the immediate price ceiling of $6.503 if BTC surges beyond $30.42K.
But the retest of the stiff resistance level and close below it could attract increased selling pressure. Sellers could wait to bid if FIL closes below $6.5. The shorting targets would be $6.186 and $5.93.
Contrary to this assumption, a close above $6.5 could tip FIL to cross the $7 zone and target $7.2. The upswing could occur if BTC zooms past $30.42K and maintains the surge.
Development activity declined, denting weighted sentiment
Source: Santiment
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According to Santiment, FIL’s development activity hit rock bottom, denting the investors’ confidence, as shown by the drop in weighted sentiment. The negative sentiment could undermine a strong rally.
But the funding rates remained positive, indicating there was more demand for FIL in the derivatives market – a bullish outlook. This could give the bulls slight hope of sustaining the rally.
