Over the past month, Filecoin [FIL] has performed impressively, rising 94.18%, with prices nearly doubling from recent lows. The bullish momentum continues, having increased by 6.17% in the past 24 hours and 24.04% over the week.
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 (tracking the total number of unsettled perpetual contracts for an asset) has increased significantly.
In the past 24 hours, FIL's open interest surged 19.13% to $396.72 million, indicating that trading activity in long contracts is more active than in short contracts. This trend aligns with the general 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 as it reflects enhanced buyer confidence.
Given the current bullish sentiment, I believe FIL may continue its upward trend and possibly reach double-digit price levels.
FIL's double-digit target: The road to $28
The chart shows 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 would mean a 319% return in the short term.
To drive this rebound, FIL must break through the resistance level of $6.71, which currently limits the upward trend. A breakthrough at this level would pave the way for sustained price increases.
Long-term liquidations hinder FIL's growth momentum.
The latest liquidation data from the past 12 hours shows significant losses for long traders.
During this period, long positions worth $743.36 were liquidated, increasing the difficulty of breaking through the current resistance line.
If this bearish pressure persists, FIL may face further challenges in maintaining its bullish momentum. A shift in market sentiment is crucial to overcoming these setbacks and restoring upward momentum.
