simply put
Filecoin’s price has been moving sideways in the second half of June, hovering around $4.50.
The CMF is trending upward and is close to crossing the neutral line, which suggests that buying pressure is rising.
Filecoin’s funding rate has remained positive for nearly two weeks, showing the dominance of long contracts.
Filecoin (FIL) prices have been volatile since early April, with the altcoin falling from $9.3 to $4.3.
However, investors would like to undo this damage by pushing the price higher and bringing it out of consolidation.
Filecoin investors bet on rising prices
Sooner or later, Filecoin’s price will break out of the consolidation phase. The Chaikin Money Flow (CMF) has been trending up recently and is approaching the neutral line, indicating a possible increase in buying pressure within the market.
The CMF is a technical analysis tool used to measure the strength of money flowing into or out of a security over a specific period of time. A rising CMF approaching the neutral zero line typically indicates a shift to buying pressure, which could lead to higher Filecoin prices.
In addition, Filecoin’s funding rate has remained positive for nearly two weeks, and the funding rate reflects the cost of holding a long position in perpetual futures contracts.
A positive funding rate means that traders holding long positions pay fees to traders holding short positions. The continued positivity over the past two weeks suggests that traders generally favor long contracts.
The dominance of long positions generally signals a bullish outlook as market participants expect Filecoin prices to appreciate further.
Therefore, these indicators collectively point to growing investor confidence and increasing interest in cryptocurrencies.
FIL Price Prediction: Looking Ahead
Filecoin’s price is currently trading at $4.29 and is currently hovering between $4.61 and $4.20. The altcoin has been stuck in this range for two weeks and a breakout would put it on track for a 7% gain.
This will push FIL to $4.70 and possibly test the $4.61 support level. The gap between this support and the next resistance at $5.6 is large and would require a 22% gain, which may not happen soon. Nevertheless, reclaiming $5 is the goal for this altcoin.
However, if the breakout fails, either consolidation is likely to continue or FIL could drop below $4.20. This would mark an eight-month low for the altcoin and invalidate the bullish thesis.
