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Filecoin (FIL) broke out of its compact price range with a 27% pump over the past 24 hours to lift it above the $7 price level. Earlier, FIL had been stuck in a price range between the range low of $5.24 and range high of $6.34.
An uptick in its daily trading volume spurred a series of bullish candles on the lower timeframes, leading to the price breakout.
Buyers sustained bullish momentum by claiming key resistance level
The bullish momentum took FIL above the $7.6 resistance level, as buyers aimed to solidify the upward trend. Despite the price dip at $7.6, buyers consolidated at the level with the latest four-hour candle closing above the resistance level.
This presents a buying opportunity for intraday traders at the current price levels. Zooming out to the daily timeframe showed that the next key resistance price zone is $9.17.
As such, buyers can enter at current price levels and look to ride the bullish wave to the next resistance level for 20% gains. Short-term traders can leverage the low-risk opportunity to maximize gains from FIL’s bullish run.
The inflow of capital to FIL strengthened the bullish conviction with the Chaikin Money Flow (CMF) posting a reading of +0.28. Similarly, the buying pressure saw the Relative Strength Index (RSI) stay in the overbought zone, signifying sustained demand for FIL in the spot market.
Meanwhile, the sentiment in the futures market was also bullish. The positive funding rate signaled that long-position traders dominated the market with a firm belief that FIL would experience further upward movement.
Combining both spot and futures market data, the sustained demand for FIL could propel the altcoin to $9 in the short to medium term.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions