Filecoin lagging behind Bitcoin and rest of the cryptocurrencies

Per request, we want to take a look at Filecoin. This cryptocurrency has been around for a few years, and the first thing that stands out to us is that its value is down more than 98% since its peak in 2021. Another thing that caught our attention is the relatively lower daily volume since the start of summer compared to the period in the first six months of 2023. Currently, Filecoin trades near $3.40, with technical indicators like MACD, Stochastic, and RSI pointing to the upside on the daily time frame, with MACD attempting to enter a bullish zone above the midpoint. We saw similar developments shortly before the recent jump in the price of Bitcoin. Therefore, it might be worth watching out for a breakout in MACD as it can bolster a bullish case in the short term. However, we think that beyond the short term, Filecoin will be exposed to the pressure of growing Bitcoin’s dominance, likely putting a lid on its price.

Illustration 1.01

Illustration 1.01 shows the daily chart of Filecoin in USD and simple support/resistance levels.

Technical analysis gauge
Daily time frame = Slightly bullish
Weekly time frame = Neutral
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.