The Filecoin (FIL) price shows a sudden bullish reversal after retesting the $8 mark displaying a rise in bullish momentum. Furthermore, the daily growth of 11% regained the $9 mark in an attempt to break above the psychological mark of $10. However, will the bullish momentum undermine the high price rejections we saw earlier this week, or should you consider being bullish despite the long wick candles in the daily chart?
- The FIL price shows a perpendicular growth in the daily time frame chart
- The daily-RSI slope spikes back into the overbought region.
- The intraday trading volume in Filecoin is $765 Million, indicating a 66% gain.
FIL market prices broke the consolidation range between $5 and $6.33 in the daily chart unleashing the tapped bullish momentum with a 35% jump on 30th July. The earliest momentum resulted in a buying-free craze fuelling the uptrend to reach the mark of $11.
However, as the buyers got exhausted, the higher price rejection led to closing below the psychological mark of $10. Thus, the bearish retracement retested the breached 100-day SMA close to the $8 mark before the long-wick candle led to a bullish reversal breaking the $9 mark.
The FIL price action displays a rounding bottom pattern forming with the bullish reversal with a neckline at the $9.75 mark. Therefore, the bullish breakout might lead to an uptrend above the $11 mark. Moreover, the uptrend continuation might hit the overhead resistance at the $12 mark.
However, a bullish failure to sustain above the $9.15 mark might lead to a retracement rally to test the bottom support of $7.25.
DMI- The lines showcase a vast bullish gap with a boom in the trend momentum evident by the ADX line. Hence the technical indicator projects a high likelihood of an uptrend continuation.
RSI– The daily RSI slope shows a rounding reversal from the 14-day SMA line breaking above the overbought boundary.
- Resistance levels- $10, and $12
- Support levels- $8 and $7.19
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