FIL Technical Analysis: In a Loop of Highs and Lows, Trading at Support Levels

Filecoin aims to store data in a decentralized manner. Unlike cloud-storage companies like Amazon Web Services or Cloudflare, which are prone to the problems of centralization, Filecoin leverages its decentralized nature to protect the integrity of a data’s location, making it easily retrievable and hard to censor.

Decentralized storage systems like Filecoin allow people to be their own custodians of their data, as well as make the web more accessible to people worldwide. Since participating in the Filecoin network by mining and storing is directly related to winning more block rewards, Filecoin incentives participants to act honestly and store as much data as possible

Let us see the technical analysis of FIL.

Past Performance of FIL

On Oct 1, 2021, it had touched a peak of $73.34. It has been creating such peaks and troughs when it had touched the highest of $120.11 in September, 2021. As of now, it is back to a sane level of $55. 45 with the hopes that it will take off.

FIL Technical Analysis

The moving averages are showing a STRONG SELL on the back of a fall in prices.

The On-balance Volume is tapering downwards consistent with the prices.

RSI has crossed the 46% region and is in the oversold region. It mirrored the OBV and price changes showing a stable change in the direction.

The MA trend and signal lines both are running parallel with the histogram picking up volume.

The Filecoin (FIL) team is celebrating the first anniversary of its mainnet, whose major product runs 13 EiB of file storage nowadays.

The project operates a distributed data storage ecosystem, but its celebrations were overshadowed in some way after a Chinese police’s action on an alleged multi-marketing level scheme.

FIL also figured in a small scandal when 31 people from one of the world’s largest Filecoin companies, Star Alliance, were arrested by local police. The seized FIL and other cryptocurrencies were worth 80 million U.S. dollars. The news didn’t directly impact FIL’s price action. After plummeting towards $52.17, FIL recovered some ground and looked forward to breaking above the 200-period simple moving average at $66.00

Price Trends for the Day-Ahead and Tomorrow

FIL is a STRONG SELL as per overall sentiment. The oscillators expect it to be NEUTRAL as of now, whereas the moving average indicator gives a SELL signal.

It is currently trading near the support levels of $54.801 and is expected to fall through further to $47.924. It has lost its pivot level of $65.933 and the next resistance of $71.34 is far away as of now.

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