Disclaimer: The information presented does not constitute financial, investment, trading or other advice and represents the opinion of the author only.
- WIRE consolidated in a narrow range.
- A falling open interest rate and the long/short ratio could give sellers more hope.
Since the end of March, filecoin [FIL] consolidated in a narrow range of $5,345-$6,000. Range trading followed Bitcoins [BTC] carry out. BTC consolidated between $26.8k and $28.8k.
BTC's failure to break above $30,000 attracted short pullbacks on several altcoins, FIL included. This shows that traders were not exiting their positions because they were expecting a rally.
Read Filecoins [FIL] Price prediction 2023-24
Will the consolidation persist or is a retracement likely?
On the daily chart, the 200-day MA (moving average) and the 20-day EMA (exponential moving average) were moving in parallel and drawing straight lines, suggesting a likely prolonged consolidation in the short to medium term.
Additionally, the RSI fluctuated near the equilibrium level, as did the OBV (On Balance Volume). Additionally, the Average Directional Index (ADX) has fallen further, reinforcing a likely retracement or consolidation.
As such, FIL may attempt to retest the lower boundary of the $5.345 range if the sellers break through the hurdles at the mid-$5.657 level and the ascending trendline (white). Further decline below the parallel channel (orange) could slow to the 200-day MA (blue line).
But a bullish break above $6,000 may occur if BTC recovers $29,000 and moves into the $30,000 area. The immediate upside targets for such a rally are $6.50 and $7.26.
Open interest rates fell
How many are 1,10,100 FILs worth today?
According to Coinglass, the FIL long/short trade ratio in the 12-hour period showed that the sellers had the upper hand. This suggested a bearish outlook for the asset in the medium term, which could prompt sellers to break above the mid-$5.657 level and the ascending line.
Additionally, the open interest rate has fallen slightly since April 8, indicating a large outflow of money from the FIL futures market – reflecting the underlying bearish sentiment. However, investors should follow the price development of BTC before taking action.