Over the last 24 hours, Filecoin’s (FIL) price surge of 10.35% contributed to its overall gain of 22.82% for the week.
Analysts believe that the current sentiment supports further growth, but breaking through a crucial resistance level is essential for sustaining the upward momentum.
Rising TVL Signals Potential Growth
In the recent week, Filecoin’s Total Value Locked (TVL) surged from $67.17 million to $92.91 million, showcasing a significant increase.
TVL reflects the total tokens engaged in Filecoin’s protocols, and a notable surge often results in a positive price trend, indicating a potential rise in this case as well.
As FIL nears the $100 million TVL mark, surpassing this threshold could lead to a substantial capital influx, potentially driving considerable price gains.
Additionally, analysis by CryptoCrypto reveals a bullish outlook among traders for FIL.
Binance and OKX Traders Optimistic
Data from Coinglass shows that traders on Binance and OKX hold a positive sentiment towards FIL, evident from the Long-to-Short ratio indicating a rise in bullish accounts.
With Long-to-Short ratios of 2.72 and 2.64 for Binance and OKX respectively, most traders anticipate further price uptrends for FIL.
These optimistic positions have contributed to the current price surge and may serve as a driving force to maintain prices and prevent any downturn in the market.
Anticipating More Long Positions
The Open Interest for FIL has increased by 21.1% in the past day, indicating a rise in unsettled contracts on the asset.
This surge in Open Interest usually signifies an increase in new positions being initiated.
With a significant rise in trading volume reaching $732.45 million, coupled with the price upsurge, the market sentiment is turning increasingly bullish.
If Open Interest maintains its uptrend, FIL’s price is likely to follow suit, potentially initiating a sustained bullish rally in the days ahead by overcoming key resistance levels.
Analyzing the 1-week chart, FIL demonstrates a bullish continuation pattern.
Persisting positive indicators and a breakout above the $6.97 resistance mark could lead FIL to significant gains of 143.37%, pushing its value to $16.79.