Hi friends, hope you are well and welcome to the new update on Filecoin (FIL) coin.
A death cross and rising wedge formation:
On the daily time frame chart, the price action of Filecoin is moving in a rising wedge pattern. There is also a death cross between 200 simple moving averages and 50 SMA formed above the rising wedge pattern. This death cross is considered a strong bearish signal among the trader’s community. This situation put pressure on the price action and pushed price action to the support of the rising wedge. Now the priceline of the FIL is likely to have a bounce by the support of the rising wedge. If the price action will be reached the resistance then it will be approximately up to $69, which is more than a 17% move. The rising wedge pattern is also considered a bearish reversal pattern. But there is also another bullish reversal pattern formed which we will discuss later in this article, which can stop the price action to break down the support of this rising wedge.
Big rally and rejection from resistance:
From January to April 2021, the price action of Filecoin has surged more than 950%. Finally, priceline of FIL found strong resistance at $200 and after several rejections finally, the price action moved down and broke down the $160, $130, $95, and $65 support levels. Now the price action has found strong support at $45 and moving between $45 support and $65 resistance.
Big harmonic BAT pattern flashed:
While the price action is getting bounced by the support of the rising wedge pattern and having firm support of $45 as well. At the same time, the price action has formed a big bullish reversal harmonic BAT pattern and moving in the buying zone on of this BAT.
The buying and sell targets of this bit BAT are as below:
Buy between: $66.66 to $44.84
Sell between: $118.70 to $196.82
The maximum extent of potential reversal zone $44.84 can be used as stop loss. As per the above targets, this trade has a huge profit possibility of 338%, and the loss possibility is 33%. But at the moment it is a low-risk trade, coz the price action is already at the end of the buying zone.
Conclusion:
The price action of Filecoin has formed a bearish reversal pattern on the daily time period but if we compare this bearish reversal pattern with bullish reversal harmonic BAT, then the BAT is stronger than this rising wedge . Because the harmonic BAT has been formed on the 4-day chart whereas the rising wedge is on the smaller time frame. The price action most of the times follows the signal of the bigger rather than the smaller time frames.
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Link for Binance exchange, to trade crypto:
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Note: Above idea is for educational purpose only. It is advised to diversify and strictly follow the stop loss, and don't get stuck with trade.