Will Filecoin Bounce? Key Indicator Points to Yes
- Filecoin appears to be on the move toward a key support level, which could signal the potential for a price increase if buying pressure picks up.
- There has also been a TD Sequential 13 indication, which signals that sellers are exhausted and a reversal could occur.
- Some investors believe that there will likely be a short-term rising trend but are waiting for stronger bullish momentum to confirm this.
In a recent post on X (formerly Twitter), crypto analyst Ali (@ali_charts) drew the attention of many Filecoin (FIL) traders and investors. In the post, Ali explains that Filecoin is sitting on the lower side of a trading channel, a strategic price point that functions as support and has the potential to soar upwards if buying activity increases.
What captured the attention of most readers was that alongside Alis analysis, a TD Sequential indicator, which is popular for anticipating a trend reversal, also appeared. Many consider this to be a confirming signal of an upcoming minor uptrend.
TD Sequential Indicator Provides Optimistic Outlook
In the TradingView screenshot shared in the post and from the candlestick pattern, we can see the price moving downwards almost to the $2.64 region, which is bounded by a thick black support line. The price touched this level and showed signs of holding above it, which suggests that buyers are starting to help defend this support barrier.
Source: X @ali_charts
Another supporting clue is that TD Sequential shows a buy signal. This sequential indicator suggests a bullish outlook when it shows 13. This is because the indicator typically flashes a 13 after a sequence of candles that suggest exhaustion in an ongoing trend; in this case, the indicator is invoking sentiments that bearish movements might be tapering.
Buyers Reaction Would Control Filecoins Possible Rise
According to the overall chart structure, it appears that Filecoin has been ranging, as the price is currently at the lower boundary. It is on the verge of testing this very boundary, which has previously acted as a major bounce point, such as in late April.
If the trend does repeat and sellers respond to the signal, it would allow Filecoin to surpass expectations and achieve short-term targets. Of course, the market must remain cautious, as additional confirmation is required, such as an increase in volume or a series of green candles that drive the price back to mid-range or upper-channel levels.
Related Reading | From $2 to $20? XRPs Historic Moves Hint at Massive Upside
Read more: https://www.tronweekly.com/will-filecoin-bounce-indicator-points-to-yes/
Text source: TronWeekly
