Here’s why fast-recovering filecoin price is under correction threat

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Brian Bollinger This week saw a significant inflow to the Filecoin (FIL), which registered a 70% increase from its February 14th low ($4.75). The upcoming release Filecoin Virtual Machine, which will bring smart contracts and user programming to the Filecoin blockchain, may explain the bullish trend. The price action today indicates that the bullish momentum is exhausted. However, it shows a long-wick rejection. Therefore, a minor pullback could assist buyers to replenish the bullish momentum.advertisementKey Points: A higher price rejection candle at $0.974 indicates hit overhead supply pressure is high
A correction could result in a 20% discount on the FIL price
Filecoin’s intraday trading volume is $1.5 billion, which represents a 69% increase
Source: TradingviewThe consolidation phase in which the Filecoin market prices became stuck was after a bullish rally that began in 2023. In February, the consolidation phase saw a sideways trend between $4.8 and $5.8 with support from a 100-day EMA. The bullish breakout occurred after the market stabilized and buying power recovered at the 100-day EMA level and $4.8 support level. The breakout rally crossed both the 200-day EMA as well as the $5.86 mark, accounting for a 58% increase in the last three trading days. Trending Stories The price action shows a lower price rejection in the daily candles, but the intraday growth rate of 12% maintains a bullish impression. The FIL prices are expected to continue their upward trend and reach $10.7, which will allow for a further 26% increase. However, exhaustion in buying pressure can fuel the higher price rejection and result in a retest of $5.8 before continuing the prevailing trend.Technical IndicatorEMAs: The rising FIL coin breached the 200-day EMA slope indicating an early sign of trend reversal.advertisementRSI- The daily RSI slope approaching the overbought region indicates the price may need a minor correction to replenish bullish momentum.Filecoin Price Intraday Levels-Spot rate: $1524
Trend: Bearish
Medium Volatility
Resistance level – $1680 and $1788
Support level: $1500 and $1420
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