Filecoin (FIL) Price Looks Poised for Another Leg Up
The Filecoin (FIL) price trend is likely still bullish and the upward movement is expected to resume soon.
Filecoin is a decentralized storage network whose native token is FIL. The Filecoin price has increased since reaching a low of $2.41 on Dec. 16. The upward movement led to a high of $9.50 on Feb.19 2023. However, the price created two long upper wicks (red icons), the most recent on Feb. 21. It has fallen since.
During the previous increase, the FIL price broke out from a descending resistance line and then reclaimed the $6.90 horizontal resistance area, which is also the 0.5 Fib retracement resistance level of the entire previous drop. Now, the area is expected to provide support.
While the daily RSI is overbought, it has not generated any bearish divergence yet. Therefore, a look at lower time frames is required to determine whether the FIL token price will increase toward the next resistance at $11.35 or fall to $6.90.
FIL/USDT Daily Chart. Source: TradingView
Filecoin (FIL) Price Has Room to Grow
The wave count from the six-hour time frame supports the possibility that the FIL price will increase toward the $11.35 resistance area. If the count is correct, it would suggest that the price is currently in wave three of a five-wave upward movement (black). Wave three has extended and the sub-wave count is given in red.
Giving waves 1 and 3 a 1:1.61 ratio (black) would lead to a high near $10. Afterward, a correction could ensue before the final increase.
A drop to $6.90 would not invalidate this count, since that would still be considered part of the correction. However, a close below $6.90 would invalidate it. In that case, the FIL price would be expected to fall toward the $4.50 region.
FIL/USDT Six-Hour Chart. Source: TradingView
To conclude, the most likely Filecoin price forecast is an increase toward $11.35. While a drop to $6.90 could occur prior to this pump, the trend is considered bullish as long as the price does not close below $6.90. If it does, the bullish thesis would be invalidated and Filecoin could fall to $4.50.
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