• FIL trades at $2.32 after a 6.83% drop, with trading volume falling 13.23% to $127.87 million.
• RSI at 42.13 and MACD crossover highlight weak buyer strength and sustained bearish momentum.
• A descending triangle pattern signals trend pressure, with reversal possible above the 50-day MA.

Filecoin (FIL) is currently trading at $2.32, representing a decrease of 6.83% over the past 24 hours. The volume of trading has also decreased by 13.23% and currently stands at $127.87 million. These signals indicate a bearish trend in the market.

Source: CoinMarketCap

FIL has been on a downward trend in the past week. The coin has decreased in value by 6.83%. It shows a consistent decline, implying that the pressure on the asset is increasing. Market participants stay wary as selling pressure rises.

FIL Nears Key Support in Triangle Pattern

Crypto analyst Jonathan Carter highlighted the presence of a descending triangle pattern on FIL’s weekly chart. The coin is narrowing at the bottom of this formation, which usually indicates the continuation of a trend. He pointed out that this arrangement is a result of the pressure FIL continues to bear in the present market condition.

Analysts added that a strong close above the 50-day moving average would alter the technical outlook. This action would bring a potential bullish reversal sign and create space to recover. According to this situation, the analyst provided estimated price targets of $4.30, $6.40, $8.40, and $11.40.

Source: X

Also Read: Chainlink (LINK) breakout forms, bullish wedge signals $55 price target

RSI and MACD Signal Bearish Momentum

The Relative Strength Index (RSI) is at 42.13 with the signal line at 49.58. A lower than 50 reading indicates weak buyer power. This reading indicates that FIL is approaching oversold territory. Buyers have been unable to deliver support, and the sellers are still putting pressure on the price.

The MACD reinforced the bearish trend. The MACD lies at -0.020, the signal line stands at -0.036, and the histogram is -0.016. These values indicate a bearish crossover. Momentum is in favor of selling. As long as volume remains poor, FIL will be under pressure in further trading sessions.

Source: TradingView

Open Interest and Volume Continue to Fall

According to CoinGlass data, trading volume fell by 2.32% to $249.92 million. The open interest also decreased by 2.05 percent to $246.50 million. The OI-weighted funding rate is at 0.0075%. These figures point towards reduced activity in leveraged markets. 

Source: CoinGlass

Currently, FIL trades in an unstable area with bearish momentum observable in both daily and weekly charts. Although high levels may induce brief rallies, gains are restricted by low activity and open interest. The coin will remain weak and continue to drop in value unless there is greater sentiment and volume.

Also Read: Ethereum Shows Strength With Key Resistance Target at $4,331