The price of Filecoin (FIL) could be nearing the end of its short-term correction, after which a significant rally will follow.
The Filecoin price has slipped below a long-term descending resistance line since its all-time high of $237.73 in March 2021. The drop led to a floor price of $2.37 in December 2022. The price has been rising ever since.
More importantly, the FIL token managed to regain the $5.55 support area. This was a crucial development, as it made the earlier outage illegal. Moreover, the $5.55 area is expected to return to support.
However, despite this rebound, the FIL coin price failed to break out of the resistance line (red icon). The trend can only be considered bullish.
If FIL breaks out, it could rise to the next resistance at an average price of USD 25. However, if a breakout of the $5.55 area occurs, a drop to $2 could follow.
The weekly RSI has generated a bullish divergence (green line) and is above 50. Therefore, it supports the possibility of a breakout.
Filecoin (FIL) March Price Prediction: Relief Rally Just Around the Corner
While the technical analysis of the weekly timeframe gives an indefinite trend, the daily chart suggests that the FIL price will soon start a relief rally. This is because the price completed a five-wave upward movement on February 17 and has since retreated, without experiencing a bounce.
So it is likely to approach the bottom of the corrective wave A. There will then be a relief rally as part of wave B followed by another drop to the 0.618 Fib retracement support level at $5.17. While only a drop below wave one low at $2.41 would completely invalidate this count, a drop below sub-wave four low (redline) at $4.61 would pose a serious risk.
Finally, Filecoin’s most likely price prediction for March is a significant relief rally towards $9, followed by another drop to $5.17. A close below USD 4.61 would jeopardize this bullish Filecoin price prediction and could be the catalyst for a sharp decline.
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