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Why FIL Resistance Levels Demand Trader Vigilance
Welcome back to another edition of The Crypto City Trading Newsletter, your go-to source for in-depth technical analysis and expert insights into the dynamic world of cryptocurrency trading. Today we are focusing on the Daily chart of FIL.
Total FIL Market Cap: $2,050,093,428
Circulating Supply: 576,582,445 FIL
Total Supply: 1,960,071,676 FIL
Max Supply: —
The technical analysis provides an in-depth look at the FIL coin. The analysis focuses on identifying key support and resistance levels, recent price movements, and possible future scenarios. By analyzing these factors, traders will gain insight into the current market condition and make better trading decisions.
Their is key feature of the chart is a descending trend line that begins from a peak in March 2024, the price is trading under this trend line for approximately 151 days, suggesting that FIL is currently in a bearish trend. This trend line acts as dynamic resistance, and the price staying below this line signals ongoing bearish momentum.
FIL is also trading under the daily resistance zone (Yellow) at $3.449 – $3.566. The price recently tested the monthly support zone (Green) at $2.419 – $3.037 after a heavy sell-off from the trend line(Red) and the daily resistance zone (Pink) at $4.788 – $4.997. We saw a pullback in the price from this region and the price has dropped significantly.
If the price breaks above the resistance zone (Yellow) at $3.449 – $3.566 and the trend line(Red) we might see some bullish moves in the price. However, the presence of the downward trend line and multiple resistance levels above the current price suggests that the overall market sentiment remains bearish. A break below the monthly support zone (Green) could lead to further declines.
Overall, the technical setup continues to be cautious: heavy resistance zones and a bearish trend line point to the least resistance. It would, therefore, be important for traders to monitor closely the price action and volume around those key levels to determine the next directional move.
Currently at the time of writing the trading volume is at $4.3M, indicating a lack of strong buying interest at the current levels. A significant increase in volume would be necessary to confirm any potential reversal or breakout.
Technical Indicators
Based on technical indicators on a daily time frame
The relative Strength Index (RSI) value is at 35.58 (Neutral)
Momentum (10) is at -1.058 signaling a (Buy)
MACD Level (12, 26) is at -0.233 signaling (Sell)
Exponential Moving Average (50) 4.410: (Sell)
Exponential Moving Average (100) 4.980 : (Sell)
Simple Moving Average (100): 5.009 (Sell)
Exponential Moving Average (200): 5.447 (Sell)
Ichimoku Base Line (9, 26, 52, 26): 3.854 (Neutral)
Volume Weighted Moving Average (20): 4.037 (Sell)
Hull Moving Average (9): 3.237 (Buy)
Interpretation
The technical analysis for FIL on the daily timeframe reveals a predominantly bearish sentiment. The overall summary shows a “Sell” signal, with oscillators presenting a mostly neutral stance and moving averages indicating a “Strong Sell.” Among the oscillators, the Relative Strength Index (RSI) at 35.589 suggests the asset is neither overbought nor oversold, while the Commodity Channel Index (CCI) and Momentum show potential buying opportunities, indicating some underlying positive momentum. However, other oscillators like the MACD and Awesome Oscillator reflect bearish conditions.
The moving averages strongly support a bearish trend, with almost all key periods (10, 20, 30, 50, 100, and 200) indicating “Sell” signals. This consistency across multiple moving averages highlights the strength of the downward trend. The Ichimoku Base Line is neutral, but the Volume Weighted Moving Average and Hull Moving Average show a mixed outlook, with the latter suggesting a potential buy.
From this analysis, we can conclude that while there are some positive indicators suggesting potential short-term buying opportunities, the broader market trend remains bearish. The dominance of sell signals from the moving averages suggests caution for traders. It is advisable to watch for key support levels and potential trend reversals before considering long positions. The current environment favors short positions or staying on the sidelines until more definitive bullish signals emerge.
Liquidation Heatmap
The FIL Liquidation Heatmap for the past three months shows significant liquidation leverage within the $4.707 to $4.996 range. This range is highlighted in the image and indicates a critical zone where many liquidations have occurred, signaling potential resistance or support levels. The heatmap uses color intensity to represent liquidation density, with darker shades indicating higher levels of liquidation activity. The chart reveals that as FIL approached the $4.707 – $4.996 range, there was substantial liquidation pressure, causing price movements to be reactive in this zone. This suggests that traders should closely monitor this range for potential price reversals or breakouts, as it represents a significant area of market interest and liquidity. Understanding these dynamics can help traders make more informed decisions about entry and exit points in their trading strategies.
Long-Term Trading Setup
We will buy in parts, we will divide our budget into 3 sections, and allocate for buying at each key support mentioned in the chart.
Here are the numbers where you can buy FIL and take profits for the trade.
Buy 1: Current
Buy 2: $2.886
Buy 3: $2.419
At buy 3 we will go all in because this is the lowest.
TP1: $6.640
TP2: $10.19
TP3: $11.850
Conclusion
In conclusion, the FIL coin’s technical analysis reveals a strong bearish trend, highlighted by a descending trend line and significant resistance levels. While some oscillators like the Commodity Channel Index (CCI) and Momentum suggest short-term buying opportunities, the overall sentiment remains bearish, with moving averages consistently indicating a “Sell” across multiple periods.
The FIL Liquidation Heatmap points to the $4.707 to $4.996 range as a critical area of market interest due to significant liquidation activity, signaling potential resistance or support. Traders should monitor this range for price reversals or breakouts and pay attention to key support and resistance levels.
Overall, traders are advised to exercise caution and stay on the sidelines until stronger bullish signals emerge. The current market environment favors a careful approach, given the prevailing bearish momentum.
Your Essential Trading Newsletter
This detailed analysis provides a comprehensive understanding of the current market structure and potential scenarios. Traders can use these insights to make informed decisions and effectively navigate the market.
Stay tuned to The Crypto City Trading Newsletter for more in-depth analyses, market insights, and expert guidance. As always, we strive to empower you with the knowledge and tools needed to navigate the fast-paced world of cryptocurrency trading. Happy trading!
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Warm regards,
The Crypto City Trading Team