In the past month, Filecoin [FIL] has performed impressively, rising 94.18%, with its price nearly doubling from recent lows. The bullish momentum continues, having increased by 6.17% in the past 24 hours, with a weekly rise of 24.04%.
Market participants will play a crucial role in shaping FIL's trajectory in the upcoming trading days.
Bullish participants still control FIL
Data from Coinglass confirms that with rising open interest (OI) and positive funding rates supporting it, FIL's bullish sentiment remains strong.
Open interest (which tracks the total number of unsettled perpetual contracts for an asset) has increased significantly.
In the past 24 hours, FIL's OI surged 19.13% to $396.72 million, indicating that long contracts were more active than short contracts. This trend is consistent with the prevailing bullish momentum driving the market.
As of the time of writing, the funding rate is 0.0296%, indicating that long traders are actively bridging the price gap between the spot and futures markets to sustain the market. This dynamic reinforces the ongoing price increase, reflecting enhanced buyer confidence.
Given the current bullish sentiment, I believe FIL may continue its upward trend, potentially reaching double-digit price levels.
FIL's double-digit target: the path to $28
Charts show that FIL trading is in a bullish triangle pattern, which is typically associated with upward momentum. FIL has broken through this pattern, laying the foundation for a significant rebound.
The first target of this trend is $16.8, followed by a potential climb to $28. Achieving this milestone means a short-term gain of 319%.
To drive this rebound, FIL must break through the resistance level of $6.71, which is currently limiting the upward trend. Breaking this level will pave the way for sustained price increases.
Long-term liquidations are hindering FIL's momentum.
The latest liquidation data from the past 12 hours shows that long traders have suffered heavy losses.
During this period, long positions valued at $743.36 were liquidated, increasing the difficulty of currently breaking through the resistance line.
If this bearish pressure persists, FIL may face further challenges in maintaining bullish momentum. A shift in market sentiment is crucial to overcoming these setbacks and restoring upward momentum.
