Following a period of consolidation, the digital currency Filecoin (FIL) has exhibited robust signs of an upward trend, suggesting a potential price increase in the near future. The token has recently overcome a previous resistance level, signaling buyers’ renewed interest and laying the groundwork for continued price appreciation. Analysts have identified a potential 35% surge in FIL’s value, drawing attention to the token’s promising weekly performance.
Filecoin’s Latest Market Movements
After a retreat from its peak price of $8.1 earlier in the year, FIL has bounced back from a support level of $4.6, forming a green bullish candle on the weekly chart. This development indicates a strong buying momentum at these price levels. The coin’s bullish pattern was further confirmed by the formation of a bullish engulfing pattern, with the Relative Strength Index (RSI) climbing above the midpoint of 50, suggesting an ongoing uptrend.
Signaling End to Downward Trend
On the daily chart, FIL has shown a move above the minor support level of $5.3 and has since established it as a base, hinting that the token has concluded its short-term downward correction. Coupled with a daily RSI indicating bullish market control, FIL is expected to approach its next resistance zone at $6.5 soon.
The current market analysis points towards an optimistic short-term future for FIL, with targets set at $6.5 and potentially extending towards the $8.1 resistance level. However, should FIL descend below the critical $5.3 support zone, this bullish outlook may be challenged.
Investors and traders are taking note of these trends, positioning themselves for what could be a notable increase in FIL’s market price, adding to the already vibrant speculative environment in the cryptocurrency space.