- Filecoin price has formed a bear flag on the 4-hour chart.
- The digital asset must stay above a crucial support level to avoid a 20% drop.
- The long term view remains heavily bullish for Filecoin.
Filecoin had a major drop in the last three days but has managed to stay above several crucial support levels.
Filecoin price must defend key support level
On the 4-hour chart, Filecoin price has formed a bear flag which could see a breakdown at any point. A 4-hour candlestick close below $150 would confirm it and has a 20% price target down to $120.
FIL/USD 4-hour chart
Considering the recent downtrend, this seems like a fairly likely scenario and would invalidate the bull flag formed on the daily chart since months ago.
To confirm a breakout from the daily bull flag, FIL must see a daily candlestick close above $185. This pattern has a long term price target of $300.
FIL/USD daily chart
However, the digital asset will pause at $200 at the 78.6% Fibonacci retracement level and the previous high of $238.