Filecoin’s native token FIL has seen a remarkable rally over the past week, surging 40% to trade around $7.7. This comes after a prolonged bear market that saw FIL plunge from its all-time high of $191 in early 2021.According to popular crypto analyst DC, Filecoin is trading within a parallel channel on its 3-day chart. He notes that if FIL can break through the key resistance at $8.50, it could start a major upside move. Specifically, DCsees Filecoin potentially tripling in value to reach $25.5 if it can close above $8.50.
DC analysis suggests significant upside potential for Filecoin based on the parallel channel patterns on its technical chart, as seen on the chart above. As he highlights, FIL appears poised to break out from its current channel after bouncing off support. The upside target DC identifies sits at $25.5 – the top boundary of the parallel channel located just above FIL’s trading range.
On the 3-day chart, we can clearly see Filecoin consolidating within the lower parallel channel over the past few months. Now, with FIL pushing against stiff resistance at $8.50 DC makes the case that a decisive break above this level could propel it towards the next channel at $25.5 – representing over a 200% rally from current levels. With buying momentum accelerating, traders seem to be anticipating this technical breakout fueling a new Filecoin bull run.
The bullish technical setup is supported by positive momentum indicators. The MACD line is above the signal line and the RSI is above 55, suggesting buying momentum is accelerating.
In terms of support and resistance zones, FIL has support around $5.00 and $4.20. On the upside, the first major resistance level sits at $8.00.
Driving recent buying interest is Filecoin’s integration with Solana, which was announced by popular crypto influencer Altcoin Daily to his 1.5 million followers on X. By leveraging Filecoin’s decentralized storage capabilities, Solana can scale while maintaining security and decentralization.