Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The market structures for both low and high time frames were bearish.
- Demand on the futures market stagnated due to fluctuations in financing rates.
Filecoins [FIL] Stubborn resistance near $3.4 has allowed sellers to look for short position profits in recent days. After reaching resistance on October 8, players who shorted FIL enjoyed shorting gains of over 9% at the press time value of $3.1.
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In a previous one technical analysis from FIL, AMBCrypto was bearish on the asset after hitting the stubborn resistance.
The validation of the projection following a price recovery to the bullish order block at $3.0 could provide buyers with a reprieve. But a solid turnaround was not imminent at the time of writing.
Will sellers exit their positions at this support?
Source: FIL/USDT on TradingView
The price reversal dropped to a high timeframe support and a daily bullish order block (OB) range of $2,950 – $3,127 (cyan) at the time of writing. While this could be encouraging for the bulls, there were no signs of a turnaround at the time of writing.
The main price charts were negative and tended towards bearish sentiment in the short term. Selling pressure increased, as evidenced by the RSI moving into the oversold zone. Moreover, spot market demand for FIL and capital inflows declined, as evidenced by negative figures for OBV and CMF respectively.
However, FIL could see a reversal towards the $3.2 and $3.4 hurdle if Bitcoin [BTC] recovered from recent losses.
Demand for Filecoin stagnated on the Futures market
Source: Coinalyse
How many Worth 1,10,100 FILs today?
In the last few hours before the release of this article, FIL demand in the derivatives segment has been stagnant, as illustrated by the sideways movement in open interest rates. In addition, the recent fluctuation in financing rates indicated possible consolidation on a limited scale before a peak.
However, the declining CVD (Cumulative Volume Delta) showed that sellers had a market advantage at the time of writing.