In recent days, Filecoin’s [FIL] tenacious resistance around $3.4 encouraged sellers to look for shorting profits. Players that shorted FIL saw returns of almost 9% at the press time value of $3.1, when the stock struck resistance on October 8.
Following the asset’s encounter with stubborn resistance, AMBCrypto was pessimistic on FIL in a prior technical analysis.
A price retreat to the bullish order block around $3.0 might provide buyers with a reprieve if the prediction is validated. By press time, though, a significant reversal was not likely.
At this support, will sellers cut their positions?
When this article was published, the price reversal had fallen below a high period support and daily bullish order block (OB) of $2.950 – $3.127 (blue). At the time of writing, there were no signs of a reversal, even if bulls could find this encouraging.
The Challenge Ahead: Filecoin’s Search for a Bullish Reversal,The Challenge Ahead: Filecoin’s Search for a Bullish Reversal/p>
Important price charts showed negative trends and a short-term bearish inclination. Selling pressure increased, as seen by the RSI’s shift towards the oversold area. In addition, negative scores on OBV and CMF, respectively, indicate a fall in spot market demand for FIL and capital inflows.
However, if Bitcoin [BTC] rebounded from its recent losses, FIL may witness a reversal towards the $3.2 and $3.4 hurdle.
Filecoin demand in the futures market stalled.
The Open Interest rates’ sideways trend in the last few hours before to press time indicates a stagnation in FIL’s demand in the derivative market. Furthermore, the recent volatility in financing rates raised the possibility of a narrow-range consolidation prior to a surge.
But as at the time of publication, the dropping CVD (Cumulative Volume Delta) indicated sellers had the upper hand.
The Challenge Ahead: Filecoin’s Search for a Bullish Reversal,The Challenge Ahead: Filecoin’s Search for a Bullish Reversal,The Challenge Ahead: Filecoin’s Search for a Bullish Reversal