Symmetrical Triangle Points to a Strong Rebound
The Filecoin price has been in a relatively tight range in the past few weeks even as other cryptocurrencies have rebounded. While Ethereum and Bitcoin are hovering at their all-time highs, FIL is about 72% below its highest level on record.
Filecoin ecosystem growth
Filecoin has stayed in the same level recently as investors watch the growth of its ecosystem. In the past few months, more blockchain platforms have shifted their workloads to the network. The most recent one is Flow, which is a fast-growing Ethereum-killer. Other platforms that are using its network are Hedera Hashgraph and Estuary.
Meanwhile, the Filecoin price reacted mildly to the launch of the Filecoin Virtual Machine (FVM) as it seeks more growth of its web3 capabilities. The virtual machine was launched in a bid to bring general programmability and compatibility with Ethereum’s blockchain.
Filecoin price prediction
The FIL price has been little changed in the past few weeks. As a result, the width of the Bollinger Bands has narrowed while the Average True Range (ATR) has dropped. This could be a calm before the storm since the price has also formed a triangle pattern that is shown in green. The Stochastic Oscillator has also moved to the overbought level.
Therefore, the triangle pattern is nearing its confluence zone. As such, there is a high probability that the price will soon jump. This rebound will be confirmed when the price rises above the key resistance level at $75. A drop below $55 will invalidate this view.
