Hi Traders,
in recent weeks we have seen significant upward momentum in cryptocurrencies spurred by a series of positive news and a rally in the stock market. Filecoin was one of the recipients of good news, and we have seen it rally significantly. A couple of days ago, Filecoin announced a partnership with the University of Harvard to help them with their storage of data and possibly bring it all on a blockchain. The price of the token skyrocketed by almost 50%, but there still might be left something in the tank if we can keep the overall positive momentum going.
On the 4-hour chart, we can see that FIL started consolidating. The price has been consolidating instead of falling back down, which is usually understood as a positive sign. If the overall crypto market keeps going higher, we might see FIL break out of the ascending triangle and head higher. I would suggest going long on the break of the purple line. On the chart, I highlighted two profit targets. On would be a 200-day simple moving average which is around the area of the light green line. If you wish to be more aggressive, then the second target is all the way at the darker green line, which is a well-tested, significant resistance level. When it comes to stop losses, you can once again choose between being conservative and aggressive. If you want to take it safer, then the orange line would be your stop loss. Considering the light green line as your profit target, you are looking at an almost 5:1 risk/reward ratio. If you want to give the price a little more space, then the other stop loss would be marked by the red line. This would lower your risk/reward to around 2:1.
Positive news require repricing of the token's price. Filecoin might benefit greatly from the new partnership, and investors now might consider the token to be still undervalued. However, be wary of the massive rally in the NASDAQ. The index is highly correlated with the crypto markets, and it has gone all the way to overbought territory. I believe, it is more than ready for a correction, which might act as a drag for the crypto markets.
Wish you luck and happy trading!
in recent weeks we have seen significant upward momentum in cryptocurrencies spurred by a series of positive news and a rally in the stock market. Filecoin was one of the recipients of good news, and we have seen it rally significantly. A couple of days ago, Filecoin announced a partnership with the University of Harvard to help them with their storage of data and possibly bring it all on a blockchain. The price of the token skyrocketed by almost 50%, but there still might be left something in the tank if we can keep the overall positive momentum going.
On the 4-hour chart, we can see that FIL started consolidating. The price has been consolidating instead of falling back down, which is usually understood as a positive sign. If the overall crypto market keeps going higher, we might see FIL break out of the ascending triangle and head higher. I would suggest going long on the break of the purple line. On the chart, I highlighted two profit targets. On would be a 200-day simple moving average which is around the area of the light green line. If you wish to be more aggressive, then the second target is all the way at the darker green line, which is a well-tested, significant resistance level. When it comes to stop losses, you can once again choose between being conservative and aggressive. If you want to take it safer, then the orange line would be your stop loss. Considering the light green line as your profit target, you are looking at an almost 5:1 risk/reward ratio. If you want to give the price a little more space, then the other stop loss would be marked by the red line. This would lower your risk/reward to around 2:1.
Positive news require repricing of the token's price. Filecoin might benefit greatly from the new partnership, and investors now might consider the token to be still undervalued. However, be wary of the massive rally in the NASDAQ. The index is highly correlated with the crypto markets, and it has gone all the way to overbought territory. I believe, it is more than ready for a correction, which might act as a drag for the crypto markets.
Wish you luck and happy trading!