A consolidation that is coming to an end
For the past five months, Filecoin has been trapped in a narrow range, oscillating between $3.18 and $4.80. This status quo has frustrated investors, but patience may soon be rewarded.
Indeed, according to technical analysis, a break beyond $4.80 could pave the way for a spectacular rise of 47%, bringing FIL to $7.20.
Several signals support this hypothesis. First, the price of FIL is currently trading above its exponential moving average (EMA) on the daily timeframe, a key indicator of an upward trend. Next, the relative strength index (RSI) shows a gradual return to neutral territory, signaling a renewed interest from investors.
But that’s not all. The graphical setup of FIL shows a bullish price action pattern, often associated with significant breaks.
If the overall sentiment in the crypto market remains positive, Filecoin could very well break its stupor to achieve an impressive ascent.
On-chain data confirm the buzz
Technical indicators are not the only ones telling this story. On-chain data provide equally promising insights.
According to Coinglass, the open interest of Filecoin has surged by nearly 8% in 24 hours, a clear sign of increasing trader activity. This increase reflects an aggressive positioning from both bulls and bears as the price approaches its key resistance level.
However, this buzz is not without risks. The liquidation levels reveal a precarious balance: $4.43 represents a point of fragility for long positions, while $4.75 jeopardizes short positions. A break beyond these thresholds could trigger a wave of liquidations, amplifying volatility and potentially skyrocketing FIL.
Despite everything, the bulls seem to have the advantage. With moderate trading volume and a price currently around $4.62, momentum could quickly swing in favor of a breakthrough. Once above $4.80, FIL could attract more investments, further strengthening its upward trajectory.
For investors, this opportunity could prove valuable, provided they closely monitor the key level of $4.80. Once crossed, the door will be wide open for a surge towards $7.20. And what if Filecoin surprises you beyond your expectations? The future will tell, but one thing is certain: crypto always holds its share of surprises.
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