Holo (HOT), Filecoin (FIL) & OCEAN are trying to find support after massive decline
Filecoin (FIL) broke the descending resistance line but was unable to initiate any significant upward movement thereafter.
Holo (HOT) is trading in a short term declining wedge.
Ocean Protocol (OCEAN) acts on a descending parallel channel.
The FIL has risen since July 20th when it traded as high as $ 40, and broke a long-term descending resistance line on August 1st and continued to hit all-time highs. On September 5th, it’s $ 120.
However, since then the price has dropped. On September 26th, it hit a low of $ 50. So far the decline has been very sharp.
Additionally, the technical indicators are turning down on the daily timeframe as both the MACD and RSI are going down.
Daily FIL / USDT chart | Source: TradingView
Despite the downtrend in the daily timeframe, the shorter-term six-hour chart shows that FIL is trading within a descending wedge that is believed to be a bullish pattern.
On September 26, it ricocheted off the 0.786 fib retracement support and the wedge support line. In addition, the MACD and RSI are rising.
As such, the current level is a good start to an upswing and could trigger a breakout above the wedge.
If the FIL doesn’t break out, it means it is headed for the July 21 low of $ 40.
FIL / USDT 6-hour chart | Source: TradingView
- FIL has broken out above a descending resistance line.
- It acts within a descending wedge.
HOT has risen since breaking above a long-term descending wedge on July 22nd. This resulted in a high of $ 0.0134 on September 2nd.
However, while it initially looked like the token had regained the USD 0.118 area, the breakout only turned out to be a deviation (red circle) as HOT fell below that zone shortly afterwards.
It is currently approaching the USD 0.063 support area. This is the 0.786 fib retracement support and the horizontal support.
The technical indicators on the daily timeframe are bearish as both the RSI and the MACD are falling.
HOT / USDT daily chart | Source: TradingView
Similar to the FIL, the shorter-term six-hour chart shows token trading within a smaller descending wedge, which is considered a bullish pattern.
Currently, HOT is nearing the point of convergence between resistance and support where a decisive move is expected.
Despite the bullish pattern, there are no clear bullish signs in sight in either the daily or six-hour timeframe.
HOT / USDT 6-hour chart | Source: TradingView
- HOT is trading on a descending wedge.
- There is support at $ 0.0063.
OCEAN has been trading on a descending parallel channel since August 21st. Such channels often contain corrective structures. Therefore, in this case, breakthrough is likely to occur.
However, the token has fallen to the lower end of the channel and is about to break below the 0.618 fib retracement support at $ 0.63.
The next support is at $ 0.495, which was created by the 0.786 fib retracement support. It also coincides with the channel’s support line.
With both the MACD and RSI falling, the most likely scenario is that OCEAN will fall towards this line before going up again.
OCEAN / USDT 6-hour chart | Source: TradingView
- OCEAN trades on a descending parallel channel.
- There is support at $ 0.495.
You can see the coin prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto