Despite the local prospect that the cryptocurrency market will continue to fall, now you should choose coins to buy. It is the confidence and strength in case of a fall that determines the strength of the project and its possible aggressive growth in the future. Let’s talk about FIL and RUNE cryptocurrencies today.
FILCOIN – powerful buying zone is $35
A powerful explosion of liquidity on 21 February at the mark of $35-40 began a new era in the FIL market. Just one month of confidence, optimism and aggressive growth gave Filcoin investors 400-500% profit. However, in almost the same time period, the FILUSDT price plummeted and is again approaching the powerful level of $35-40. How many investors have managed to fix profits at historical highs is a rhetorical question. However, in reality, an interesting question – is it worth expecting at least local optimism in the FIL market over the next 2-3 months?
Powerful fall wave slows down
As we can see on the chart, the FIL began its decline on 1 April, right after setting the historical high at $238. We predicted this scenario on 1 April, publishing our forecast:
A month of price consolidation in the range of historical highs, low volumes and buyers’ weakness gave sellers confidence to continue the downward trend.
The first critical point that sellers took control of was the mark of $130. Having broken this mark on 13 May, stop orders of all buyers who bought in consolidation during the April May period were triggered. This fact helped sellers to lower the FILUSDT price by 55% over the week.
The first stop of the FIL price after a total fall was at $55. However, the decline began to slow down earlier – from the mark of $97. A fall wave like on 13 May does not stop at one point with a sharp reversal in the other direction. Such a powerful train of death must be stopped gradually. Even the mark of $55, which buyers guarded pretty tightly during May-June 2021, could not resist. On 21 June, sellers updated their local low and the trend shows that this is not the end.
The aggressiveness of the falling trend has significantly fell, local lows are updated more difficult each time. Though, the continuation of the fall to the level of $35-40 is a very real and natural scenario.
High trading volumes and the beginning of consolidation – a reversal signal
There are also advantages of the current situation on the FIL market. First, the slowdown of the FIL price decline happens at high volumes. This fact indicates the interest of large buyers to keep the price. Also, the transition of the downward trend to consolidation indicates that the market is preparing at least for an upward correction.
The first target of the local price rebound upwards is the mark of $97. We imagine how many investors are stuck in unprofitable positions and are waiting for at least the first strong level. Therefore, we do not think that the first time buyers will be able to take control of the mark $97. Although, the growth by 160% in the face of a likely change in trend in the cryptocurrency market is a remarkable result.
The high probability of a test of $35-40 is also confirmed by the FILBTC chart:
On the chart, we see that the price is moving in a clear downward channel, which is correcting the upward wave. If the cryptocurrency market continues to fall, the FILBTC price may fall by another 35%. However, even this fact will not reverse the global growth trend that began on the FILBTC market in January 2021.
RUNE: Project overview and levels for long purchase
THORChain (RUNE) is a decentralized liquidity protocol or, more simply, Defi exchange.
Quite a young project since 2019, but the launch of the main network took place in early 2021.
The cost of the RUNE token should be based on the price of $0.90-1, exactly this price was before the launch of the main network. And then the RUNEUSDT trading pair was expected to grow rapidly to $21.
The May correction in the crypto market also affected the value of RUNE, the fall was by 80%. A lot, but all cryptocurrencies have gone through this. Another question is that not all crypto projects survived after this.
The picture on the RUNEUSDT chart looks pretty positive.
During the entire fall, increased volumes were observed, there are investors who are ready to buy at a lower price.
Given these facts, it is hard to believe that the RUNEUSD price will lower below $4 in the near future, we more believe in a rebound to $8.5.
The planned for third quarter 2021 mainnet update also adds a positive impact (DEX cross-chain / ASGARDEX wallet).
Nevertheless, it is worth keeping in mind an alternative scenario, if the entire crypto market goes significantly lower, then the RUNEUSD price will not keep. Below $4 per RUNE will open the way for a fall to $1.60.