Filecoin [FIL] has displayed resilience in the face of recent market fluctuations, managing to avoid substantial price drops amidst a broader cryptocurrency market decline.
The 20th of December 2024 witnessed a notable downturn in the cryptocurrency market, resulting in liquidations amounting to $1.18 billion.
Increased Interest from Large Investors
The recent wave of liquidations has sparked unease among investors and traders. However, large investors, known as whales, have continued to display significant interest and confidence in the FIL token, as indicated by data from the on-chain analytics firm Coinglass.
An analysis of FIL’s Spot Inflow/Outflow data reveals a substantial outflow of $13.85 million from exchanges across the cryptocurrency space.
In the context of cryptocurrencies, an “outflow” denotes the transfer of assets from exchanges into the wallets of long-term holders. These on-chain metrics point towards a potential upswing in prices, presenting a favorable opportunity for crypto investors.
Trader Sentiment Towards FIL
In addition to the sustained interest from long-term holders, traders have also exhibited a strong inclination towards the token.
According to Coinglass, the Binance FILUSDT Long/Short Ratio currently stands at 3.12, indicating a bullish sentiment among traders. Presently, 75.71% of the top Binance traders have taken long positions, while 24.29% have opted for short positions.
Technical Analysis and Crucial Levels for Filecoin
The growing interest from both whales and traders coincides with FIL approaching a critical support level and the 200 Exponential Moving Average (EMA) on the daily chart.
As per CryptoCrypto’s technical analysis, FIL has successfully tested the 200 EMA support level and begun an upward trajectory.
Considering recent price movements and historical trends, maintaining a price above $4.75 could potentially lead to a 40% increase in FIL value to reach $7. On the contrary, if FIL drops below the 200 EMA and closes a daily candle under $4.70, a 30% decline in price might be anticipated in the days ahead.
At the time of reporting, FIL was hovering around $4.71, having witnessed a price decrease of more than 16.5% in the past day.
During this period, the trading volume surged by 14%, signaling increased engagement from traders and investors amidst the market downturn.