Filecoin's FIL token has declined 3.70% over the past hour to trade at $4.35. With a market cap of $1.97 billion, FIL remains a top 50 cryptocurrency project.
Looking at the numbers, FIL is down 3.97% over the past 24 hours. However, the weekly performance is positive at +1.98% while the monthly gain stands higher at +5.18%. The 6-month change shows a decline of 20.24% indicating choppy price action in 2022.
The 3.70% hourly drop shows sellers have temporarily regained control after a period of consolidation. Support may emerge around the $4 level, with resistance at $4.50.
What Key Levels Should FIL Traders Watch?
On the downside, look for support around $4. Below that, the 2022 low at $3.50 comes into focus.
On the upside, resistance is seen at $4.50 (weekly highs) and $5 (2022 highs). A daily close above $5 would signal a bullish breakout.
Is Filecoin a Good Buy at Current Levels?
FIL remains stuck in a long-term downtrend but has shown relative strength in recent weeks. The token looks neutrally positioned currently within its trading range.
Aggressive traders could look to buy dips near $4 support. However, conservative traders may want to wait for a break above $5 resistance before going long.
Risky short positions could be placed near $4.50/$5 resistance, but momentum signals remain neutral for now. Active traders may have the best opportunities playing the range.
In summary, Filecoin has retreated after a period of consolidation but holds its short-term range. The coin likely needs a breakout above $5 resistance to reinvigorate bullish momentum. Until then, range-bound price action between $4 and $5 looks likely in the near-term.