Filecoin (FIL) Price Could Be Set for a Breakout as Demand Increases

Filecoin’s (FIL) price has had a terrible run since the beginning of April, as the altcoin fell from $9.3 to $4.3.

However, investors are looking to undo this damage by pushing the price back up and pushing it out of consolidation.

Filecoin Investors Bet on a Price Rise

Filecoin’s price could break out of its consolidation sooner or later. The Chaikin Money Flow (CMF) has recently shown an uptick and is approaching the neutral line, suggesting a potential increase in buying pressure within the market.

The CMF is a technical analysis tool used to measure the strength of money flow into or out of a security over a specified period. A rising CMF nearing the neutral zero line typically indicates a shift towards buying pressure, which could potentially lead to upward momentum in Filecoin’s price.

Filecoin CMF. Source: TradingView

In addition, Filecoin’s Funding Rate has remained consistently positive for nearly two weeks. The funding rate reflects the cost of holding long positions in perpetual futures contracts.

A positive funding rate implies that traders holding long positions pay a fee to traders holding short positions. This sustained positivity over the past fortnight indicates a prevailing sentiment favoring long contracts among traders.

Such dominance of long positions often suggests a bullish outlook as market participants anticipate further price appreciation in Filecoin.

Read More: Filecoin Staking: How To Get Started

Filecoin Funding Rate. Source: Coinglass

Thus, these indicators collectively point toward growing investor confidence and increasing interest in cryptocurrency.

FIL Price Prediction: Looking Ahead and Up

Filecoin’s price, trading at $4.29, is currently constricted within the limits of $4.61 and $4.20. The altcoin has been in this range for two weeks now, and a breakout from it would warrant a 7% rally.

This would push FIL to $4.70, potentially testing $4.61 as a support level. The gap between this and the next resistance at $5.6 is huge, and a 22% rise would be required, which may not happen soon. Nevertheless, reclaiming $5 is the target for the altcoin.

Read More: Filecoin (FIL) price prediction 2024/2025/2030

Filecoin Price Analysis. Source: TradingView

However, if the breakout fails, either consolidation could continue, or FIL could slip below $4.20. This would mark an eight-month low for the altcoin and invalidate the bullish thesis.

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