๐ Daily TA: Filecoin (FIL/USD) | 27-12-2021
Hodl, dear members of LeoFinance!
Today I would like to comment on the price chart of Filecoin.
In the weekly chart (1W), FIL/USD has dropped below the trend line: So, because of the ongoing bearish pressure, the current price decline is starting to challenge the continuation of the uptrend. That's why the bulls should be very cautious.
Moreover, in the daily chart (1D), the price of Filecoin has dropped below the 30-day Moving Average (MA 30), the 90-day Moving Average (MA 90), and the 360-day Moving Average (MA 360) - a clear bearish signal: In addition, two bearish Moving Average Crossover took place and, now, there is a bearish distribution of the three key MAs - MA 30 is at the bottom, MA 90 is in the middle, and MA 360 is at the top. So, it is clear that in the daily chart the bears are controlling the market.
However, if we look at the daily chart (1D) from another perspective, we can see that FIL/USD has formed a Descending triangle (common trend continuation pattern): At the moment the price is in the final part of the triangle. So, very soon, the price will exit the triangle. Since it is a common trend continuation pattern, theoretically, it is highly probable that FIL/USD will resume the uptrend or the trend before the triangle. That's why in the daily chart we have some controversial (opposite) signals.
For now, in the 4-hour chart (4H), FIL/USD continues its journey within the Descending Narrowing Wedge (downtrend): If FIL/USD exits the wedge in the downward direction then, in the daily chart (1D), the bearish scenario based on the bearish distribution of the three key MAs will be the dominant outcome. However, if FIL/USD exits the wedge in the upward direction then this scenario may become invalid and the scenario based on the Descending Triangle may become dominant.
To be continued ...
As of the time of writing, one FIL costs $41,08 on the Coinbase crypto exchange, according to TradingView.
A few words about me:
Just to let you know: I've been working professionally as a currency analyst for the last 15 years and as a cryptocurrency analyst for the last 4 and a half years.
Important!
Keep in mind, that thoughts expressed here are my own, and they should not be regarded as recommendations for any cryptocurrency/commodity trades, investments and etc.
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