- BitMEX founder expects Filecoin to hit $100 on the back of the AI boom.
- FIL was overbought, suggesting a possible retracement below $7.
- If FIL nosedives to $5.43, a harder rebound to $19.33 could be possible.
Arthur Hayes, the co-founder of BitMex posted that Filecoin (FIL) price could hit $100. According to Hayes’ post on X, the reason behind this is the budding AI narrative in the bull market.
With its decentralized storage fundamentals, Filecoin has been capitalizing on the growing attention AI tokens have had in recent times. At press time, CoinMarketCap showed that FIL has been one of the best-performing cryptocurrencies in the last 24 hours.
FIL/USD 4-Hour Price Analysis
FIL has gained 11.78% in the last 24 hours. However, indications from the 4-hour chart showed that the cryptocurrency could be losing hold of the bullish momentum. At press time, FIL’s price was $8.17.
Furthermore, indications from the Relative Strength Index showed that the reading had dropped to 64.92. The decline implies that buying momentum had slowed down and FIL might not hit $9 in the short term.
This was also evident from the signals shown by the Bollinger Bands (BB). Though the BB indicated high volatility, the upper band tapped FIL near $8. This indicated that FIL was overbought, and the resulting outcome was for the price to be retraced.
In a highly bearish scenario, profit-taking could lead the token to $6.96. However, if bulls continue to push up the price, FIL could tap $10 within some days.
FIL/USD 4-Hour Chart (Source: TradingView)
FIL/USD Daily Price Analysis
On the daily timeframe, the Money Flow Index (MFI) had surpassed 80.00, reinforcing the notion that the token was overbought. This increase was also proof of intense capital inflow which was instrumental to the price increase.
Capital inflow into FIL might reduce as it stands. If this is the case, the price could reverse downward in the short term. Targets for the cryptocurrency in this instance could be between $6.45 and $7.50.
However, the Fibonacci retracement indicator showed that FIL could extend its gains in the long run. For instance, the 0.618 Fib level was at $6.77. Should FIL drop to this level and later bounce, the price could climb to $17.19.
In the case where FIL nosedives to $5.43, the 4.236 Fib level showed that rebound could be harder. If this is the case, FIL’s price might jump as high as $19.33 in the mid to long term.
FIL/USD Daily Chart (Source: TradingView)
As for the $100 prediction, it seems possible. However, it would require a lot of liquidity inflow and buying pressure from the market.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
