The crypto market faced another downturn as Bitcoin tumbled nearly 9% following US President Donald Trump's announcement of a 25% tariff on goods from Mexico and Canada. This has sent bearish momentum across altcoins, most notably affecting Filecoin and FET.
Filecoin's Downward Trend
Filecoin has been caught in a descending triangle pattern for almost a year, struggling to gain bullish momentum. After peaking at $8.38 in December, FIL faced a strong rejection at the upper trendline, leading to a prolonged correction. Currently, the price has fallen to a major support zone of $2.94, a level historically known for sparking strong rebounds. The potential for a bounce from this level remains, possibly pushing the price towards the 25-day Simple Moving Average.
FET Faces Market Challenges
FET has also followed a similar trend, trading within a descending triangle since last year. The current price is around a key support zone of $0.58, a point that has historically seen strong demand. Holding this level might lead to a rebound. For a bullish recovery, FET needs to break above the 100-day SMA.
What to Expect Next?
Both cryptocurrencies are at crucial make-or-break levels, and their future moves heavily depend on overall market sentiment, particularly Bitcoin and Ethereum's performance. Although technical indicators show bearish signals, a potential bullish MACD crossover could confirm a trend reversal. As long as critical support holds, there remains hope for a rebound.
While the current cryptocurrency market situation remains tense, holding key support levels may provide a chance for recovery. Otherwise, further decline is possible.
