According to the latest data, Filecoin (FIL) is trading at approximately $2.77, registering a slight decline of 0.38% over the past twenty-four hours. The highest price during the day reached $2.94, while the lowest price touched $2.76.
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📉 Overview of the current market
Filecoin has experienced a prolonged bearish trend since reaching its all-time high in 2021, having lost over 99% of its value. The current market cycle has been disappointing, with FIL barely reaching double digits in March 2024, and nearly dropping to its all-time low in March 2025.
Technical indicators are also bearish, as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) show bearish momentum. The Average True Range (ATR) has decreased since 2024, indicating lower volatility.
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🔍 Technical analysis: Potential reversal patterns
Despite the prevailing bearish trend, some analysts are noticing potential reversal patterns forming in the FIL/USDT chart:
Wedge formation: The FIL token is forming the third wedge pattern within a broader bearish trend that has lasted for over two and a half years. The chart shows a clear symmetrical triangle, with each prior wedge followed by a strong bullish breakout. Currently, the price is showing signs of local upward trend and accumulation near the lower bound of the channel, increasing the likelihood of a rebound. Immediate targets range from $4.38 to $4.81, with potential for further upside.
Double accumulation range: The chart displays two clear consolidation phases, indicating accumulation at relatively equal support areas. A breakout above the $3.50 resistance level could lead to noticeable upward movement, with targets ranging from $8 to $9.
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📊 Key levels to watch
Level status
Support: $2.50 - $2.60 critical accumulation zone
Resistance: $3.30 - $3.50, a key barrier to bullish momentum
Target area: $8-9, potential for upside upon breakout
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🛠️ Trading strategy
Given the current market conditions and potential reversal patterns, traders may consider the following strategies:
Accumulation near support: Consider entering positions near the $2.50 - $2.60 support area, anticipating a potential rebound.
Breakout confirmation: Watch for a breakout above the $3.50 resistance level, which may indicate the start of a bullish trend.
Set stop-loss orders: Execute stop-loss orders below the $2.50 support level to manage potential downside risk.
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⚠️ Risks to consider
While the possibility of a reversal exists, it is essential to remain cautious:
Market volatility: Cryptocurrency markets are inherently volatile, and sudden price fluctuations can occur.
Economic factors: Global economic developments can impact investor sentiment and market dynamics.
Regulatory changes: Evolving regulations can create uncertainty affecting market behavior.
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*Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Please always do your own research before making investment decisions.*