Is Filecoin Price Going to Zero? FIL Sinks 5% as New Bitcoin Mining Protocol Gathers $5.5 Million in Funding – Next Big Thing?
Leading decentralized file storage token Filecoin (FIL) has sunk -5%, leaving some panicked holders asking ‘is Filecoin price going to zero?’.
The -5% drop appears to have been triggered by localized retracement moves, as Filecoin price shifts down to test supportive footing from the ascendant 20DMA.
$Fil
On Verge Of Massive Breakout Formed Text Book Symmetrical Triangle & Testing It In case Of Successful Breakout Expecting Move Towards 20-25$ ✍️#Crypto #Fil #Filusdt pic.twitter.com/sRaceXFp25
— World Of Charts (@WorldOfCharts1) December 20, 2023
Market sentiment remains astutely bullish despite the downtick, with prominent crypto traders identifying that FIL is likely to undertake a breakout bounce from here.
As FIL fights to hold ground amid the retracement moves, Filecoin is currently trading at a market price of $5.19 (representing a 24-hour change of +1.66%).
The downtick comes after Filecoin price rallied to touch a new localized high at $6.175, a level untouched since April 2023.
This comes amid impressive supportive structure from the ascendant 20DMA (which is currently sat at around $4.94).
Meanwhile, the 200DMA reveals a potential area of rock-bottom support around $4.
In a bullish sign, the retracement down to 20DMA support has created opportunity on the RSI, which has cooled down sufficiently to a more acceptable 56 – suggesting upside could resume soon.
This sentiment is backed by the MACD, which is displaying continued minor bullish divergence at 0.019.
Overall, FIL price is currently looking strong, benefiting from the downtick to solidify support and create opportunity for the next bounce.
This leaves Filecoin price with an upside target at $6.5 (a potential +25%).
While downside risk could see Filecoin price tumble
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