Key Takeaways:
- Filecoin confirms a bearish descending triangle
- If Bicoin falls, FIL is likely to follow.
- Binance will support the Filecoin hard fork and Network upgrade, but will it help FIL?
YEREVAN (CoinChapter.com) – Filecoin (FIL) followed Bitcoin’s lead and consolidated sideways since the FTX-related drop on Nov 8. As a result, the FIL price traded at $4.37 on Nov 29, holding on to crucial support. However, technical indicators hint at another leg down in the upcoming sessions.
FIL confirms a bearish setup
Filecoin, like Bitcoin and other leading digital assets, traded within a pattern dubbed the ‘descending triangle’ since mid-May. The formation entails a falling resistance line, flat support, and a powerful mid-range indicated with a dotted line on the chart below. They connect the swing highs and lows, preventing sharp moves in either direction.
Meanwhile, the descending triangle is a bearish continuation pattern and generally forecasts a drop equal to the maximal swing amplitude.
As FIL confirmed the pattern by breaking below the support on Nov 8, the target price for the digital asset stands close to zero, a near 99% drop. Moreover, the declining trading volumes confirm the bearish outlook, hinting at growing disinterest among investors.
Also read: Bitcoin Bottom Calls Pick Momentum as BTC Price Eyes Crash to $10K
If Bitcoin bulls pick up the pace in 2023, FIL might escape the dramatic price depreciation. Considering the current market instability, solid predictions are hard to make. However, if BTC experiences another leg down, so will Filecoin, despite bullish fundamentals.
Binance will support Filecoin hard fork
According to the announcement on Nov 29, the world’s largest crypto exchange Binance will support Filecoin’s Network upgrade and hard fork.
The latter will occur at epoch 2,383,680, or approximately on Nov 30 at 14:00 (UTC). Due to the fork, deposits and withdrawals of FIL will also be suspended starting from Nov 30, 13:00 (UTC).
The trading of FIL will not be affected during the network upgrade and hard fork. The estimated time is for users’ reference only. Binance will handle all technical requirements involved for all users holding FIL in their Binance accounts.
read the announcement.
The Binance team also mentioned that the upgrade would not create new tokens. “We will reopen deposits and withdrawals for FIL once we deem the upgraded network to be stable,” said the exchange.
Considering Binance’s dominant position on the market, Filecoin might benefit from its patronage. However, if the ubiquitous bearish sentiment among digital assets persists, Filecoin is likely to comply.
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