FIL and FET Testing Key Support Amid Significant Correction: Is a Bounce Back Ahead?

Date: Thu, February 6, 2025 | 06:57 PM GMT

In the cryptocurrency market, major altcoins have been struggling to hold their ground since the November-December rally. Many altcoins have undergone a steep correction, largely influenced by the rapid rise in BTC dominance, which continues to add bearish pressure.

Among the hardest-hit altcoins are Filecoin (FIL) and Artificial Superintelligence Alliance (FET), both of which have experienced substantial drops of 43% and 50%, respectively, in the past 30 days. Now, they are at a critical juncture, testing key support levels.

Source: Coinmarketcap

Filecoin (FIL)

The weekly chart for Filecoin (FIL) indicates consolidation within a descending triangle pattern. The recent downtrend, which started on December 2, was triggered by a rejection at the upper resistance trendline around $8.38.

Filecoin (FIL) Weekly Chart/Coinsprobe (Source: Tradingview)

This decline pushed FIL down to a major support zone within the triangle, reaching a low of $2.87, aligning with the lower level of the zone. However, the price has held firm and is now trading around $3.13. Previously, this level acted as a strong rebound zone, and if history repeats itself, FIL could see a bounce from this support.

A bounce and breakout above the 100-day SMA would confirm further bullish momentum, with the upper resistance trendline as the next key target.

Artificial Superintelligence Alliance (FET)

Similar to Filecoin (FIL), the weekly chart for Artificial Superintelligence Alliance (FET) shows consolidation within a descending triangle pattern. The recent downtrend, which started on December 2, was triggered by a rejection at the upper resistance trendline around $2.32.

FET Weekly Chart/Coinsprobe (Source: Tradingview)

This decline pushed FET down to a major support zone within the triangle, reaching a low of $0.60, aligning with the lower level of the zone. However, the price has held firm and is now trading around $0.72, with support from the 200-day SMA. Previously, this level acted as a strong rebound zone, and if history repeats itself, FET could also see a bounce from this support.

A bounce and breakout above the 100-day SMA could lead it to upper resistance trendline of triangle.

Is a Bounce Back Ahead?

Both FIL and FET are showing resilience at their key support levels. Their next moves will largely depend on Ethereum (ETH) and the broader crypto market sentiment. If ETH continues its recovery, it could provide the momentum needed for altcoins like FIL and FET to confirm a breakout and start a new bullish trend.

The MACD on both charts is bearish but showing signs of weakening momentum, indicating a potential reversal if a bullish crossover occurs.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.