The technical view presents a picture of uncertainty after bulls got rejected at $5.6 and then gave up $4.7.
We can see both the daily RSI and MACD indicators are signalling weakness, with the RSI indicator above 50 but downsloping. The MACD indicator suggests a bearish flip.
In terms of a bearish outlook, Filecoin risks falling to the $3.9 support line, with extended downward pressure here likely to push FIL/USD to the critical demand reload zone between $3.1 and $2.7.
However, the 19% decrease in daily trading volume points to a potential flip in sell pressure. As such, the opposite setup could see FIL rebound off the $4.2-$4.4 area to reclaim $5.0 as support.
If this happens, a move to the recent six-month peak above $5.6 could allow bulls to attack $6.5. The short term picture could pave way for more bullish movements should the broader market provide favourable conditions.
