Filecoin (FIL) Attempts to Recover from Multi-Month Low, Eyes a Rise to $5

Filecoins’ (FIL) price recently reached a multi-month low, which it is attempting to recover from. This will warrant support from its investors.

Filecoin's (CRYPTO: FIL) price recently hit a multi-month low, a development that is now attempting to garner support from its investors.

Given the market conditions, this could happen, especially if the bullishness noted among investors continues.

Filecoin Might Rise

Filecoin's Relative Strength Index (RSI) recently showed its most extreme oversold condition in ten months. Oversold conditions occur when the RSI falls below 30.0, a condition that often precedes a price rally.

Historically, such periods of overselling have been followed by rallies, suggesting that Filecoin may be set for a price increase. The RSI's sharp dip could attract investors looking to capitalize on the potential for gains.

In addition to the RSI, Filecoin's Funding Rate has shifted from negative to positive. A negative rate suggests that the majority of the contracts in the futures market are shorts, while positive rates indicate a dominance of long contracts in the market.

The positive Funding Rate suggests that investors are betting on a Filecoin price increase in the near future. This shift in sentiment could further fuel the anticipated rally, strengthening the bullish outlook for Filecoin.

$5 In Sight For FIL Price

Filecoin's price is trading at $3.9 at press time, attempting to break $4.2 and flip it into a support line. This line has served as a strong support level for the altcoin, and it could also help FIL break $4.6 and head towards $5.0.

Breaking $5.0 will help the investors realize substantial profits. Moreover, being a psychological support level, reclaiming it would drive further investment into the asset.

However, if this fails, Filecoin's price could be subjected to consolidation between $4.6 and $4.2. Dropping below the latter would invalidate the bullish cues, bringing FIL back to present levels and extending the wait for recovery.