After trading in a narrow range for almost five months, Filecoin (FIL), the decentralized digital storage network, seems poised for a bullish breakout. The current market sentiment is positive, with many cryptocurrencies showing signs of upward momentum and breakouts.
Technical Analysis and Key Levels for Filecoin
Against this backdrop, FIL has established a bullish pattern on its daily chart, garnering strong support from both traders and investors.
Based on the technical analysis by CryptoCrypto, FIL is on the cusp of breaking out of the consolidation range it has been confined to for the past five months, spanning between $3.18 and $4.80.
Recent price movements and technical analysis suggest that a daily close above the $4.80 level could trigger a potential 47% surge, pushing FIL towards $7.20. The asset currently trades above the 200-day Exponential Moving Average (EMA), signaling an uptrend, with the Relative Strength Index (RSI) in oversold territory, hinting at a likely rally.
Positive On-Chain Metrics for FIL
On-chain metrics further support Filecoin’s bullish outlook. Recent data indicates a substantial increase in open interest (OI) as traders have become more active.
According to Coinglass, an on-chain analytics firm, FIL’s OI has surged by 7.9% in the last 24 hours and 4.65% in the past four hours, reflecting heightened trader activity and the rise in open positions.
The key liquidation levels currently stand at $4.43 and $4.75, with traders holding significant positions at these levels, as per Coinglass data.
If the price climbs to $4.75, approximately $1.5 million in short positions will be liquidated, while a drop to $4.43 could lead to the liquidation of around $6.21 million in long positions, based on current market sentiment.
Both on-chain metrics and technical analysis point towards bullish dominance and the potential for FIL to break above its resistance level.
As of the latest data, FIL is trading around $4.62, showing a 3.5% increase in the past 24 hours. However, trading volume has decreased by 8%, indicating reduced participation compared to the previous day.