Filecoin (FIL) price is likely to experience a pullback as it retreats to a key level. The altcoin was trading near $4.6 on Friday afternoon, about 8% down in the past 24 hours. If prices fall further, bulls could rely on primary support near $3.1 to $2.7.
The technical view suggests potential for a further dip to lower buffer areas, as both the daily RSI and MACD indicators are signalling weakness. The RSI is above 50 but downsloping, while the MACD suggests a bearish flip.
In terms of a bearish outlook, Filecoin risks falling to the $3.9 support line, with extended downward pressure here likely to push FIL/USD to the critical demand reload zone between $3.1 and $2.7. However, a 19% decrease in daily trading volume points to a potential flip in sell pressure.
Should bulls manage to rebound off the $4.2-$4.4 area and reclaim $5.0 as support, the altcoin could move to the recent six-month peak above $5.6 and attack $6.5. The short term development could lead to more bullish movements, provided that the broader market provides favourable conditions.