The cryptocurrency market is in an extended correction following its explosive rally. Bitcoin and Ethereum are significantly down, causing concern among investors.
Current State of the Cryptocurrency Market
After a significant surge last November, the cryptocurrency market has faced a prolonged correction. Bitcoin (BTC) has now fallen to $79,000 from its peak of $110,000, and Ethereum (ETH) has dropped to $2,100. Among the affected altcoins are Filecoin and Internet Computer, both suffering notable declines.
Filecoin (FIL) and its Position
Filecoin (FIL) has been locked in a descending triangle pattern for nearly a year. It is currently testing a major support level at $3.02, from which it might recover to the 25-day Simple Moving Average (SMA) or even return to previous highs. However, without a decisive breakout from the current resistance, the correction might persist.
Status of Internet Computer (ICP)
Much like FIL, Internet Computer (ICP) continues its downward trajectory within a descending triangle. Currently trading at $6.13, it rests on a key support level. A successful break above the 25-day SMA resistance could pave the way for further gains.
While FIL and ICP show resilience at their current support levels, their recovery will largely depend on the overall market sentiment and movements of Ethereum. Investors should keep a close watch on developments.
