The cryptocurrency market is experiencing a sharp decline over the past 24 hours, with the overall market capitalization shrinking by 8%. Bitcoin and Ethereum have dropped by 8% and over 11%, respectively.
Filecoin (FIL)
The weekly chart of FIL shows a descending triangle pattern lasting nearly a year. After hitting a high of $8.38 in December, FIL faced strong rejection and continued its correction. Recently, FIL reached a support zone at $2.83, a level where rebounds have previously occurred. The current price is above this support, at $2.89, suggesting a possible bounce. If a rebound occurs, the price could move towards the 25-day SMA.
Artificial Superintelligence Alliance (FET)
Like FIL, FET is within a descending triangle. The recent downtrend began on December 2 after rejection near $2.32. The current support is at $0.62, which has served as a demand zone before. A rebound from this support and a move above the 100-day SMA could signal a reversal.
What's Next?
Both FIL and FET are currently holding at critical support levels. Their next move largely depends on the sentiment around ETH and the broader market. MACD indicators suggest ongoing bearish momentum, but a potential reversal could occur with a bullish crossover. However, breaking below support could lead to further losses.
Despite the current decline, FIL and FET have a chance for recovery if support holds. Investors should watch these levels closely.
