Global cryptomarket trades in red as U.S, equity fell sharply on Thursday. Fresh U.S. economic data raised concerns about further monetary tightening to save the economy from a probable recession
- FIL edges lower with modest losses on Thursday in sync with the broader crypto market.
- FIL targets further lower levels on the one-hour chart.
- Bitcoin and Ether are trading in the red zone for the second day.
FIL losses marginally amid broader bearish sentiment
Filecoin is an open-source protocol that enables anyone to rent out spare storage space on their computer. Today, the Filecoin price analysis is bearish. The market turns red following the release of the U.S. GDP data. The U.S. economy grew at 3.2% in Q3 2022, better than market expectations of 2.9%.
At the press time, the price of Filecoin reads at $2.90, down 0.55% for the day. Further, it could test the lower level from a technical perspective. The 24-hour trading volume dropped 15% to $86,312,568 with a live market cap of $1,019,271,304 as per analytic firm Coinmarketcap.
Filecoin turns bearish on the smaller time frame
The FIL/USD one-hour chart is bearish with mixed technical indicators. The momentum oscillators have been flirting near the critical levels. The Moving Average Converge Divergence (MACD) line is just below the midline with the increasing bearish histogram. Any downtick in the indicator could drag the price lower.
The hourly RSI of 39 indicates that Filecoin is still in the oversold zone. If the selling pressure continues, FIL could drop below $2.90.
In addition, the price remains pressured below the 21-day Simple Moving Average (SMA) at $2.94. More downside targets could be found at the $0.61% Fibonacci retracement level at $2.84.
This will cheer up the bears who will be encouraged to take a further dip to the low of December 20 at $2.72.
On the flip side, if the price move toward the 21-day EMA as the $2.90 marks the formation of a double bottom formation on the hourly chart. If that occurs then the price could test the intraday high of $2.99. More buying interest could turn the direction of the trend in the short term.
On the broader time frame, the coin is in a downtrend. Traders are advised to avoid aggressive bids before the confirmation of the trend.