With the whole crypto sphere raucous at the moment, one major player seems ready to take flight. After a prolonged period of stagnation, Filecoin (FIL) is emerging as the hottest blockchain project. Right at the center of speculation, it is the impending bullish momentum. So, what is this hullabaloo surrounding this critical threshold? Let us delve into the details of a captivating analysis.
Consolidation nearing its end
The five-month-long range of Filecoin has ranged between $3.18 and $4.80, staying in a narrow range. For investors, such a status quo has been frustrating but could soon be a godsend.
Indeed, a break beyond the $4.80 mark could trigger a mind-boggling rally of about 47%, making the coin soar to $7.20.
There are so many signals backing this theory. The first one is that FIL is trading above its daily exponential moving average (EMA) on the daily scale: a key indicator of an upward trend. Secondly, the relative strength index (RSI) is slowly returning to neutral territory, indicating renewed interest from investors.
While on-chain data does confirm this buzz, they are not the only things telling this story.
On-chain data confirms the excitement
The open interest for Filecoin continues to rise, nearly 8% over the last 24 hours, as per Coinglass. A crystal-clear rise in the intensity of trade participation. Aggressive positioning by bulls and bears as they target that key resistance level is, however, indicated by the move.
But beware-this buzz comes with its own set of risks. Liquidation levels have put things on a razor's edge: $4.43 is where longs are vulnerable, while $4.75 becomes the risk for shorts. Once this level is broken, there can be mass liquidation, and with it the increase in volatility may well trigger FIL surging.
Maximize your Cointribune experience with our 'Read to Earn' program! For each article you read, earn points for exclusive rewards. Enroll now and start earning.
Lcording to the investors, it is a wonderful opportunity as long as they keep an eye on the influential position around $4.80. Once it has managed to break off, it has become wide open for parabolic growth to $7.20. What if Filecoin floored you? It's too soon to tell, but one thing’s for sure- celebration of surprises is very much involved in this business.
Also, FIL's charting action leaves it in an almost Bullish formation pattern creating some cause for optimism for huge breakouts.
If the general crypto market sentiment remains positive, Filecoin could very well shelve its inertia into something very impressive.
Yet, still, the bulls appear to hold the upper hand. The turnover is not too higher, with price just above the $4.62 level, momentum could swiftly change in support of the breakout. Above $4.80, more investment could identify FIL and further strengthen its potential bullish movement.
0 Comments