Evolving Bearish Pennant Could Trigger Selloff

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  • A bear­ish pen­nant is evolv­ing on the 4‑hour chart
  • The 1400 UTC can­dle on Tues­day showed a steep intra­day selloff.
  • File­coin price pre­dic­tion points towards a $50 price IF the bear­ish pen­nant is validated.

The File­coin price pre­dic­tion is for the pair to assume fur­ther down­side bias, giv­en the pat­tern on the 4‑hour chart and the intra­day price action.

File­coin has not ben­e­fit­ed from the recent cryp­to ral­ly as it strug­gles with low volatil­i­ty due to dimin­ished investor inter­est. Fol­low­ing recent swing highs seen on 8/9 Octo­ber 2021, File­coin has been post­ing pro­gres­sive­ly low­er highs. 

A micro­scop­ic look at the price action showed a very bear­ish hourly can­dle at 1500 UTC. The price pat­tern on the 4‑hour chart shows an evolv­ing bear­ish pen­nant, which will have bear­ish con­se­quences for the pair if the pat­tern evolves as expect­ed. The steep­ness of the upper bor­der of the pen­nant indi­cates build­ing bear­ish pres­sure, which the bulls may find hard to defend against. 

Filecoin Price Prediction

The 4‑hour chart of the FIL/USDT pair shows that the strong intra­day down­side move test­ed the low­er edge of the evolv­ing bear­ish pen­nant. A break­down of this bor­der and the 61.2813 sup­port com­pletes the pat­tern. The mea­sured move from the pat­tern is expect­ed to attract some demand at 54.9968 (28/29 Sep­tem­ber lows), mak­ing this point the next down­side tar­get. Below this lev­el, the pri­or low of 26 Sep­tem­ber at 50.566 forms the next down­side target.

See also

On the flip side, a break of the 65.7947 resis­tance allows the FIL/USDT pair to aim for 70.1552. This move also inval­i­dates the bear­ish pen­nant. How­ev­er, a bull­ish rever­sal of the File­coin price only comes if the 81.9161 price bar­ri­er gives way. 

Filecoin Price Action: 4‑Hour Chart

Fol­low Eno on Twit­ter.



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