Filecoin [FIL] could provide another 20% increase if Bitcoin [BTC]….

Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and solely represents the opinion of the author

• Two obstacles are blocking the FIL’s path to its pre-FTX level.
• FIL’s development activity declined, but the funding rate remained positive.

Filecoin [FIL] January’s rally offered investors gains of over 90% after rallying from $2.992 to a high of $5.788. But it was still two obstacles from its pre-FTX level of $6,348. At press time, FIL was trading at $5.288 and flaring red after Bitcoin [BTC] lost the $23,000 zone.

read Filecoin [FIL] price prediction 2023-24

Selling Pressure and the $6.016 Hurdles: Can Bulls Clear Them?

Source: FIL/USDT on TradingView

FIL entered extended price consolidation between mid-November and mid-December 2022 after a massive post-FTX saga plunge.

It fell from $6,554 to $2,433, losing over 60% of its value. But the $2.906 support level was stable enough for the bulls to initiate a recovery.

Is your portfolio green? Check the FIL Earnings Calculator

FIL’s uptrend in January has seen investors recoup most of the losses following the FTX saga. But a short term selling pressure zone ($5.679 – $5.790) and $6.016 hurdles prevented a full recovery to the pre-FTX level of $6.348.

FIL could clear both of these obstacles if BTC recovers and surges above the $23.5K zone.

However, a break below $5.182 and the uptrend line would invalidate the bullish bias outlined above. Such a decline could settle at the $4.983 support level.

FIL’s development activity declined, but demand remained stable

Source: Santiment

According to Santiment, FIL’s development activities gradually declined and impacted investors’ outlook for the asset, as evidenced by the decline in positively weighted sentiment. The ongoing decline could undermine the momentum needed to overcome the two obstacles.

However, FIL’s funding rate remained positive, suggesting an underlying bullish outlook for the asset. Further demand for FIL in the derivatives market could amplify the uptrend and trigger a price reversal.

Moreover, after a sharp decline in FIL’s trading volume, there was an upward trend. But the uptrend should add to the buying pressure by press time. Therefore, investors should monitor BTC performance, especially at the $23.5K and $22.5K levels.

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