The asset trading is in a bullish triangle pattern, which could enable FIL to reach the $28 mark.
As participants expect the upward trend to continue, market sentiment is increasingly leaning towards bullish.
In the past month, Filecoin [FIL] has performed impressively, rising 94.18%, with its price nearly doubling from recent lows. The bullish momentum continues, with a 6.17% increase in the last 24 hours and a weekly increase of 24.04%.
AMBCrypto's analysis finds that market participants will play a significant role in shaping FIL's trend in the upcoming trading days.
Bullish participants still control FIL
Coinglass data confirms that with the rise in open interest (OI) and positive funding rates as support, FIL's bullish sentiment remains strong.
Open interest (the total number of unsettled perpetual contracts tracking an asset) has increased significantly.
In the past 24 hours, FIL's OI surged 19.13% to $396.72 million, indicating that trading activity in bullish contracts is more active than in bearish contracts. This trend aligns with the overall bullish momentum driving the market.
As of the time of writing, the funding rate is 0.0296%, indicating that bullish traders are actively compensating for the price gap between the spot and futures markets to sustain the market. This dynamic reinforces the ongoing price increase as it reflects growing buyer confidence.
Given the current bullish sentiment, AMBCrypto's analysis suggests that FIL may continue its upward trend, potentially reaching double-digit price levels.
FIL's double-digit target: The path toward $28
Charts show that FIL trading is in a bullish triangle pattern, which is typically associated with upward momentum. FIL has broken out of this pattern, laying the groundwork for a significant rebound.
The first target of this trend is $16.8, which could then rise to $28. Achieving this milestone would mean short-term gains of 319%.
To drive this rebound, FIL must break through the resistance level of $6.71, which currently limits the upward trend. Breaking this level will pave the way for sustained price increases.
Long-term liquidations hinder FIL's growth momentum
Recent liquidation data from the past 12 hours shows that bullish traders have suffered significant losses.
During this period, bullish positions valued at $743.36 were liquidated, increasing the difficulty of currently breaking through resistance levels.
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.