Despite a drop of over 30% in daily trading volume, Filecoin (FIL) remains an appealing investment option, having experienced a 2.13% increase in the last 24 hours.
The FIL/USDT pair recently broke out of a prolonged descending wedge pattern, showcasing a notable turnaround. This breakout momentum propelled FIL beyond its minor resistance levels, culminating in a retest of the breakout point, which served as a bullish confirmation signal.
Following the recent rally, FIL has established a fresh support level, previously a resistance level during the consolidation phase within the wedge. The $5.60 level has proven to be an attractive entry point for investors.
If the current bullish trajectory continues, a $30 price target could be within reach, presenting a significant upside potential from its current position.
The breakout momentum also suggests that FIL might exceed the predicted mid-term target, provided that market conditions remain favorable.
Analysis of Open Interest and Bid & Ask Delta
Observing FIL’s movements over the year, fluctuations in OI-weighted funding rates, particularly during price surges, indicate a willingness among traders to pay a premium for holding long positions.
While Open Interest has not exhibited consistent growth, occasional spikes have aligned with upward trends, signifying a strengthening commitment from traders.
Analysis of the Bid & Ask Delta reveals a dominance of buying over selling; however, trading dynamics have shown variations. The recent retest has witnessed a doubling of buying volumes compared to the past two weeks.
Collectively, these metrics suggest a cautious optimism among traders regarding FIL’s potential to reach the $30 mark.
Despite mixed indicators, periods of underlying strength could propel FIL towards the aforementioned target.
FIL Metrics: TVL, Volume, Market Cap, and FDV
Notably, Filecoin has experienced growth in Total Value Locked (TVL), which has surged to $425.81 million. This uptick in TVL signifies increased protocol usage and growing investor confidence.
Although the 24-hour trading volume stands at a modest $196,122, active participation indicates interest in FIL, albeit at a smaller scale compared to other cryptocurrencies.
FIL’s market cap currently sits at $4.13 billion, underscoring its substantial presence in the crypto market. The Fully Diluted Valuation (FDV) is recorded at $13.244 billion.
The fluctuating yet overall upward trajectory of cumulative TVL signals a rising interest and potential stability within FIL’s ecosystem.
Should this trend persist, Filecoin could experience further value appreciation, potentially reaching the $30 mark and enhancing utility.