Filecoin made a bullish breakout
The weekly timeframe shows that FIL price has been declining for 570 days along a descending resistance line. This drawdown culminated in the December 2022 low.. Then the token began to grow consistently. After two failed breakout attempts, FIL price finally rose above the trend line and horizontal resistance area this week.
Filecoin price reached a high of $8.48, its highest level since February 2023. If the rise continues until the close of the week, it will confirm a bullish breakout of the resistance line.
Source: TradingView
Weekly Relative Strength Index (RSI) is bullish. The indicator is growing and has almost exceeded 70 (green icon).
Cryptocurrency traders and analysts on Platform X are positive about FIL's prospects. Thus, ColdBloodShill noted growth on the monthly timeframe:
Monthly chart FIL/USDT. Source: X
BluntzCapital noted that the price is breaking through a long-term resistance line, and Captain Faibik predicts that Filecoin will rise by almost 200%.
FIL forecast: will the price attack the $10 mark?
The daily timeframe supports the continuation of the upward movement. Price action shows that FIL rallied and closed above the $7.60 horizontal resistance area, which is now expected to provide support to the price.
Elliott wave analysis suggests that the coin is in the third wave of a five-wave upward movement. If this calculation is correct, FIL could make a short-term decline that would test the $7.60 area and complete the fourth wave before beginning an upward move.
Finally, the daily RSI is above 70 and rising.
Additionally, if Filecoin's rise continues, the next resistance will come into play at $10.30, which is almost 30% higher than the current price. This resistance is formed by the Fibonacci level of 1.61 of the external correction of the previous decline.
Source: TradingView
Despite the bullish outlook, FIL closing below $7.60 could trigger a significant 20% decline that would take the price to the next support level at $6.50.
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