The price of Filecoin (FIL) has fallen by as much as 95% in the overall cryptocurrency market decline, and there are no clear enough signs of a reversal yet.

At the time of writing, FIL was trading at $21.21, having accumulated a 4.4% gain in the last 24 hours. It has a market cap of $3.515 billion, which is why it is ranked #37 in the CryptocurrencyOnline rankings.

This sharp drop in cryptocurrency prices has been keeping investors on the sidelines. The size of the rally is small, which makes positivism uncontrollable.

But after more than 90% correction, it is also important to consider that the sales space has become smaller and smaller. For this reason, those who can trust the program in the medium/long term can start looking for entry points.

To put us in context, Filecoin is a decentralized storage system designed to store the most important information for humanity. It raised $205 million through an ICO in 2014, but won't launch its main network until 2020.

The project describes itself as an incentive layer for the Interplanetary File System (IPFS), which is used as a peer-to-peer storage network.

FIL cryptocurrency is used as a vehicle user to record data storage commitments on the network. What can we expect from the price of this coin? We find it below.

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Filecoin Price Technical Analysis

On the weekly FIL vs USDT K-chart, we can see a very clear short/medium term downtrend, which could continue to cause problems.

Filecoin prices have recently found support around $20, which has been holding back previously bearish forces.

We are now again seeing rejection above $20, which seems to signal a broader rally to follow. However, the previous strong bearish direction does not allow this to be the most likely scenario.

In order for the bulls to send a solid bullish signal, they must first break through the $26 resistance level, which would open the ground to $40.

For now, we are likely to see more losses. The candle that closed below the support level where the price is today signals a search for new lows. 15 could be the next target for the shorts.

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FIL Monthly Chart

On the monthly K-chart of Filecoin prices, things look pretty bleak. However, with the downturn lasting so long, a good relief rally may be on the horizon.

After losing support at $52, FIL lost the bullish parabolic trend of the previous months. As a result, the ground was cleared to $20, the support level on which the price is relying today.

Now, the trend is clearly down, but the momentum is quite extended and the $20 support level could signal a significant upside correction.

In order for long-term bulls to be able to trust this cryptocurrency more, they should first wait for higher and higher lows on the monthly charts.

All of our publications are informative in nature and should not be relied upon as investment advice under any circumstances.