Date: Fri, February 28, 2025 | 07:44 AM GMT
The cryptocurrency market is experiencing an extended correction following the explosive rally in November. This downturn has now turned into panic mode for many investors, dragging Bitcoin (BTC) down to $79,000 from its all-time high (ATH) of $110,000, while Ethereum (ETH) has slipped to $2,100.
Among the impacted altcoins are Filecoin (FIL) and Internet Computer (ICP), both of which have suffered significant losses of over 7% in the past 24 hours, extending their 30-day corrections beyond 30%.
Source: Coinmarketcap
Now, both tokens are testing key support levels, leaving investors wondering: is this the perfect time to buy?
Filecoin (FIL)
FIL’s weekly chart reveals that the price has been trapped in a descending triangle pattern for nearly a year. After reaching a high of $8.38 in early December, it faced strong rejection from the upper trendline, triggering a prolonged correction.
Filecoin (FIL) Weekly Chart/Coinsprobe (Source: Tradingview)
Currently, FIL is testing a major support level at $3.02, a historically strong rebound zone. If this level holds, a bounce could push FIL toward the 25-day Simple Moving Average (SMA), signaling renewed bullish momentum. A breakout from the descending triangle’s resistance could open the doors for a broader recovery, potentially targeting $4.50 or even revisiting its $8.38 high in the long term.
Internet Computer (ICP)
Like FIL, ICP has been stuck in a descending triangle for the past year. Its latest downtrend began in early December after a rejection at the upper resistance trendline near $15.60.
Internet Computer (ICP) Weekly Chart/Coinsprobe (Source: Tradingview)
At present, ICP is trading at $6.13, resting on a key support zone that has historically acted as a strong demand area. If buyers step in, the first resistance to watch is the 25-day SMA. A breakout above this level could push ICP toward its next major resistance around $11.00.
Time to Jump In?
Both FIL and ICP are showing resilience at their respective support levels. However, their ability to bounce back will largely depend on Ethereum’s performance and the overall market sentiment. Technical indicators, including the MACD, suggest bearish momentum is still in play, but a bullish crossover in the coming weeks could signal a trend reversal.
For those willing to take a calculated risk, these support zones could present a solid buying opportunity. Historically, the market rewards those who react strategically during periods of panic—just as we are witnessing now.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions in cryptocurrencies.
