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.
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.
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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
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.
The post Filecoin (FIL) Price Could Be Set for a Breakout as Demand Increases appeared first on BeInCrypto.
