The bulls are trying hard to lift the FIL price out of its long consolidation phase. Despite a slight increase in trading activity, the price still hasn’t reached the local resistance level, which is concerning.
Filecoin experienced a significant drop and stayed in a bearish consolidation for the past few months, which lowered its resistance. Just when market participants had lost hope for a decent upswing, the token showed a notable rise. Now, the FIL price might continue to trend upwards, as technical indicators also support a bullish outlook.
Filecoin’s Bullish Outlook Despite Interim Pressures
The FIL price has been trading within a bullish range despite interim bearish pressures that have caused the token to shed some gains. The current trade setup indicates that the price is using all its strength to break out of consolidation. If this breakout occurs, a 30% upswing could be imminent.
FIL is trading within a rising, expanding channel but is currently consolidating along the lower support of this channel. However, the RSI remains within an ascending parallel channel, suggesting that the rally continues to hold strength. As a result, FIL is expected to maintain an ascending consolidation and initially rise above $6.7, with potential to extend above $7 in the coming days.
Potential Upswing for Filecoin
The Ichimoku cloud, which indicates potential entry and exit points, has just reached the end of its bearish trend. Although it has not yet flipped to a bullish trend, the end of the descending consolidation might pave the way for a healthy upswing.
Additionally, trading volume is gradually increasing, suggesting that Filecoin’s price could rise and achieve higher targets before the end of the month.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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