Amidst the current climate of uncertainty in the market, major cryptocurrencies are witnessing a significant decline in prices, impacting overall market sentiment.
Within this context, Filecoin [FIL], a prominent decentralized physical infrastructure (DePIN) crypto project, has reached a crucial support level and appears ready for substantial upward momentum.
Present Price Trend
As of the latest data available, Filecoin was hovering around $3.37 and had shown a modest price increase of 0.50% over the past 24 hours.
During the same period, there was a notable 16% surge in trading volume, signaling a rising interest from traders and investors due to the emergence of bullish price movements.
Filecoin’s Price Performance and Future Levels
According to the technical analysis conducted by CryptoCrypto, Filecoin has formed an ascending triangle pattern within the four-hour timeframe.
Despite the recent price dip, the asset’s price has reached the support of the ascending trendline. This development has turned it into a textbook-like pattern, setting a decisive moment for the asset’s future trajectory.
Given recent price movements, a successful hold at $3.38 could propel FIL’s price by 20% to hit $4.05. Conversely, if the asset fails to maintain this level and closes a four-hour candle below $3.30, it could decrease by 14% to reach $2.92.
At the time of report, FIL was trading beneath the 200-day Exponential Moving Average (EMA), indicating a downtrend.
Positive On-Chain Indicators
Despite the critical juncture, intraday traders were showing optimism towards long positions on Filecoin, as per data from the on-chain analytics firm Coinglass.
The data indicated that intraday traders with long positions were heavily leveraged at the $3.32 mark, with a total of $1.31 million in long positions. Meanwhile, traders with short positions were over-leveraged at $3.42, holding $268,620 in short positions.
These over-leveraged positions signify the prevailing bullish sentiment for the asset amidst unfavorable market conditions.
In addition to the participation of intraday traders, long-term holders are actively accumulating tokens. Statistics from Spot Inflow/Outflow demonstrated that exchanges experienced an outflow of FIL tokens valued at $1.30 million in the preceding 24 hours.
This suggests an accumulation trend among investors and long-term holders.
Given the present market mood, such outflows from exchanges could generate buying pressure, leading to further upward momentum.