Filecoin price prediction – Why FIL hitting $10 soon is NOT impossible

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  • Filecoin’s monthly chart pointed to $10 EMA as a bullish target
  • FIL registered weekly gains of 20.08%, while trading above the 50-week SMA

As a seasoned analyst with over two decades of experience in the crypto market, I’ve seen my fair share of bull and bear markets. However, the current momentum of Filecoin (FIL) is something that catches my attention. With its monthly chart pointing towards a bullish target at $10 EMA and weekly gains of 20.08%, it seems that FIL has managed to recover nearly half of its losses from its seven-month decline.

This month saw a substantial increase in the value of Filecoin, with its price rising by more than 68.3%. As a result, Filecoin’s currency (FIL) managed to recoup about half of the losses it had experienced during its seven-month downturn.

Looking at a noticeable difference between its monthly average around $5 and weekly average at about $10, AMBCrypto considered if this trend might push the cryptocurrency up to reach its next moving average.

Will FIL sustain its momentum on the charts?

Currently, Filecoin is exhibiting robust bullish trends in the market, as seen by its price surging past crucial resistance points. On the weekly graph specifically, Filecoin is trading at $6.14 – which is notably higher than its 50-week exponential moving average of $4.97. This upward movement suggests a breakout from an extended downtrend.

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The previously mentioned surge has led to a rise of more than 20.08% in value over the last seven days, indicating increasing buying interest. The next significant barrier is approaching close to the 100-week Exponential Moving Average (EMA) at $7.44, suggesting potential for additional upward trends on the price graph.

From another perspective, looking at the monthly view, FIL displayed a more significant trend change, with its current price being $6.14 and an increase of 68.3% in value.

The difference between the long-term moving averages points towards a potential increase of around $10.89, which could serve as an area for growth if the bullish trend continues.

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As a crypto investor, I’ve noticed historically that when a breakout happens, prices often test the next moving average level. This means the $10 zone is quite likely to be our next target. On the flip side, the $5-mark seems to be shaping up as a significant support area for both weekly and monthly timeframes.

If the current support level holds firm for FIL, it will strengthen the upward trend and potentially trigger a quick advance toward $10.

 A breach below $5, however, could signal a loss of momentum and a retest of previous lows.

Positive AO, CMF indicate strong buying activity

As I pen this down, the 4-hour chart for Filecoin shows a bullish pattern reinforced by crucial signals. Specifically, the price candles are positioned above the Alligator indicator, suggesting an upward movement in the price. This alignment serves as a strong indication of an ongoing uptrend. Moreover, the expanding lines of the Alligator suggest an increase in market momentum as well.

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The Awesome Oscillator showed a strong positive value of 0.443, signifying an increase in bullish energy, as the graph’s bars consistently surpass the zero line and move upward. Maintaining this trend could boost market confidence and trigger increased buying activity over the coming days.

Ultimately, the Chaikin Money Flow indicator showed a level of 0.21, indicating robust investment into the asset due to an influx of capital. This high CMF value signifies that market participants have been consistently accumulating the asset, with buyers holding more power over sellers in this case.

DeFi ecosystem’s expansion

By the end of 2024, the total value locked (TVL) in Filecoin has significantly increased from almost nothing in mid-2023, reaching more than $90 million. This surge indicates a growing acceptance of decentralized applications and protocols on the Filecoin platform.

Indeed, there was a notable upward trend that started around early 2024. During the second and third quarters, the Total Value Locked (TVL) experienced substantial increases.

It’s quite possible that these hikes are due to increased usage in Decentralized Finance (DeFi) systems that leverage Filecoin’s decentralized storage system, as well as rising curiosity about Filecoin’s staking and income potential.

Filecoin’s outflows suggest long-term accumulation

Based on the growing Total Value Locked (TVL) within the Filecoin network, the movement of Filecoin (FIL) coins in the spot market also underscores the escalating engagement with this cryptocurrency.

The graph clearly showed a prevailing tendency of withdrawals from exchanges, evident in the recurring red bars. This pattern implied that investors are gradually transferring FIL for long-term holding or utilization within decentralized platforms, which coincides with the growing number of uses within the ecosystem.

Periodically, surges in incoming funds (represented by the green bars) appear during major market happenings or price fluctuations. For example, notable increases in inflow activity were observed in February and November, aligning with increased trading volume and market volatility.

Remarkably, the latest price recovery occurred alongside continuous withdrawals – A clear indication of investor faith and hoarding as the asset picked up speed in its upward trajectory on the graphs.

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2024-12-01 04:08