Filecoin (FIL) price has broken out of a multi-year symmetrical triangle, transitioning to a bullish trend and targeting a $30 midterm rally. The breakout above $6 resistance, backed by a 204% surge in trading volume. It also saw a 20.47% rise in open interest, signals strong market confidence and momentum.
Filecoin Price Breakout from Symmetrical Triangle Signals Potential 5X Rally
Filecoin has bullishly broken out of a multi-year symmetrical triangle, which is a very strong key technical indicator that often precedes a price rally.
Following the triangle’s breakout above the resistance, FIL saw a retest of the breakout level that confirmed the rebreakout of the triangle.
It also marked a higher high, adding to the proof this asset has officially finished its long-standing downtrend.
With this breakout, FIL is changing trend from being bearish to bullish and thus this is a preparation for a rally towards $30 in midterm.
The symmetric triangle pattern is a consistent pattern in terms of the signals that it gives to market traders.
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Here we had a breakout above the $5.50-$6.00 range that served as a resistance zone. After the retest, FIL appeared to be gaining momentum.
Symmetrical Triangle Breakout is projected to the upside towards $30, which would indeed represent a massive 400-500 % rally from current levels.
There is considerable buying interest during the supply dump-off as well, indicating accumulation at the discount levels.
This converges with the consensus among market analyst’s that FIL is undervalued at these prices.
Futures Open Interest and Price Trend
From approximately $200M in mid-November through to January 6, data from Coinglass clearly shows the steady increase of Filecoin’s (FIL) open interest from $200M to $381M, representing an impressive growth of about 26.9%.
This is in line with increasing speculative activity in the futures market. At the same time, FIL’s price has risen and fallen sharply, taking it from around $5 late October up to $7.50 as early as December, only to be priced down to near $6 as of January 6.
Due to rising open interest, spiked price volatility and increasing open interest indicate a rise in trader engagement and expectations as FIL’s future price action.
Volume Surge: 244.57% Increase
Moving to the volume, we see a shocking 244.57% surge in trading volume to $881.64M.
Compared to the relatively stagnant volume of around $200M – $400M daily from August to mid-November, this is a big spike
In December, FIL’s price also rallied, around which the increase in trading activity took place, indicative of the influx of speculative momentum in the market.
This is due to mounting interest in FIL as traders profit from price movement and the growing liquidity of derivatives markets.
Long/Short Ratios Highlight Bullish Sentiment
Currently, Binance FIL/USDT long/short ratio is 2.8212, showing that there are more longs positions than short positions.
It shows a very bullish sentiment among market participants as traders keep expecting further upside in price.
Despite this, another key metric, the 24-hour long short ratio of 0.9489, shows that the market is more balanced in the short term, as bears have taken the lead and placed downward pressure on FIL’s price volatility.
Total liquidations over the last 24 hours amounted to $2.95M, consisting of $1.14M for long positions and $1.81M for short positions.
Therefore, we see that shorts had a higher degree of liquidation pressure, probably due to aggressive upward price movements during this time.
While bulls are still in control, there are still bears as well that tend to short sell.
On shorter timeframes, as on the 4-hour period, $343.91K in liquidations occurred, $342.14K from longs and $1.78K from shorts.
This demonstrates that in particular trading windows, price corrections were encountered by bullish positions, which liquidated massively.
