Many people have a soft spot for FIL (Filecoin), mainly because of the large losses on FIL. Many people are unwilling to give up and always want to make up for the losses by holding FIL. Some people often ask me, how will FIL perform in this bull market? First of all, we need to understand why FIL performed well in the last bull market. From a fundamental point of view, the vision of the FIL team is to build a decentralized storage network, which is very attractive.
However, the team seems to pay more attention to marketing and publicity. Therefore, in 2020 and 2021, both the currency circle and other circles have heard about FIL. With the support of a high-sounding vision and various mining machine propaganda, coupled with the background of the bull market, the price of FIL has been rising all the way. Many people have invested hundreds of millions or even tens of millions to buy FIL mining machines. However, only when the tide recedes can we know who is swimming naked. When the bull market peaked and began to fall, the owners of major mining machines realized that their investment was based only on vision rather than actual returns. The cost of FIL miners is higher than that of other miners. Not only do they need to buy mining machines, but they also need to buy coin pledges, and there is a time limit. Faced with changes in the market environment, the return on investment has become a distant prospect, and miners have lost confidence, and the price of the currency has fallen all the way. On the way, there are still many believers who have been buying the bottom all the way, from $120, $90, all the way to a few dollars.
So, can FIL return to its peak in this bull market?
FIL, currently priced at $5.4, has reached a very critical position. At present, after experiencing a wave of decline, the decline of FIL has slowed down, and the short position has gradually shrunk. Since the decline stopped on April 15, FIL has entered a range of fluctuations between $5 and $6.8. This position is very important for FIL, because there is a double support of the neckline and trend line below, which is a relatively strong support area.
At present, the long and short forces are balanced, and there is a high probability that the market will continue to fluctuate. If the trend line fails to hold and the short force increases, FIL will effectively break through the support level, and there may be a small probability event that it will return to the bottom range. At this critical position, we can use small-level analysis, such as the daily chart, to track the market trend more quickly and in real time, so as to make the most favorable decision.
Whether you are currently holding FIL, wondering whether to cover your position or sell at a loss, or waiting and looking for an entry point, you need to find a definite position through the market. Don't operate based on your feelings. It is not advisable to panic and sell at a loss when you feel that the price will continue to fall, or to blindly build or cover your position when you feel that the price has stopped falling. In trading, our biggest enemy is ourselves. Because relying on feelings, stubbornness, lack of cognition and lack of ability often lead to losses and passivity. Therefore, rationally analyzing the market and finding clear support and resistance levels can better grasp market trends.
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