Filecoin [FIL] has shown remarkable growth over the last month, with a surge of 94.18% and almost doubling in value from recent lows. The bullish trend persists, with a 6.17% increase in the last 24 hours, adding to a weekly rise of 24.04%.
Analysis in the cryptocurrency space indicates that market participants will have a decisive impact on FIL’s direction in the upcoming trading sessions.
Bullish Sentiment Prevails for FIL
Coinglass data confirms the strong bullish sentiment for FIL, backed by a rise in Open Interest (OI) and a positive Funding Rate.
The Open Interest, which measures the total number of open perpetual contracts on an asset, has seen a significant increase.
In the last 24 hours, FIL’s OI surged by 19.13% to $396.72 million, indicating heightened activity favoring long positions. This development aligns with the broader bullish market momentum.
At the time of writing, the Funding Rate is at 0.0296%, indicating that long traders are actively supporting the market by bridging the price differential between spot and futures markets. This setup reinforces the current price rally, signifying increased confidence among buyers.
Given the prevailing bullish sentiment, projections from industry analysis suggest that FIL may sustain its upward movement, potentially targeting double-digit price thresholds.
Aiming for Double-Digit Price Levels: The Journey to $28
Technical analysis illustrates FIL trading in a bullish triangle pattern, often associated with upward momentum. Having already broken out of this pattern, FIL appears primed for a substantial upsurge.
The initial target within this trajectory is set at $16.8, with a subsequent potential rally towards $28. Achieving this milestone would represent a 319% increase over a brief period.
To facilitate this rally, FIL must surpass the resistance barrier at $6.71, which is currently impeding upward progress. Surpassing this level would clear the path for sustained price appreciation.
Challenges Faced as Long Liquidations Impact FIL’s Momentum
Recent data on liquidations in the past 12 hours highlights substantial losses for long-position holders.
During this period, long positions worth $743.36 were liquidated, exacerbating the existing challenge of breaking through the resistance level.
Should this bearish pressure persist, FIL might encounter additional hurdles in maintaining its bullish trajectory. A shift in market sentiment will be critical in overcoming these obstacles and regaining upward momentum.