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Filecoin breaks free from its months-long range, with key datasets signaling a bullish momentum continuation.
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The altcoin’s price action is showing clear signs of decisively moving above the resistance level of $4.83, which has limited the upward movements since the 4th of July.
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According to COINOTAG sources, the Long/Short Ratio and funding rates suggest a continuation of the bullish run that follows this technical breakthrough.
Filecoin surges past resistance level of $4.83, trending towards $6.77 as bullish indicators strengthen market confidence.
Filecoin’s Breakout and Market Validation
Filecoin [FIL] has finally broken above the consolidation pattern that it has been confined to for months, a move considered by many analysts as a significant technical breakout. The recent price action suggests a robust bullish sentiment among investors, ignited by the coin’s surge to $5.727 at press time, representing a 20.07% increase since surpassing the resistance level of $4.83 within the past 48 hours. This rally positions the altcoin just 16% shy from the key resistance at $6.77.
Source: TradingView
Growing Confidence in Filecoin
COINOTAG analysis of Coinglass data indicated that Filecoin’s OI-Weighted Funding Rate has maintained a positive trajectory, reaching new local highs. This suggested growing market participant confidence in FIL’s upward movement. The sustained positive Funding Rate suggested that Filecoin’s long-position holders were willing to pay a premium, reflecting their bullish outlook on Filecoin’s near-term price action.
Source: Coinglass
Liquidations Also Lean Bullish
Additionally, recent liquidation data from Coinglass indicated a huge liquidation pool of 283.74K at the $6.262 price level, which pointed to intense market participation during the breakout. This further created a market bullish bias that could fuel the rally. This also raises the prospect of more upward movements should the market dynamics continue favorably.
Source: Coinglass
Notably, the Long/Short Ratio indicated a balanced distribution with a slight bias toward longs, suggesting that Filecoin’s rally still has room for extension before reaching excessive leverage levels.
Source: Coinglass
$6.77 Resistance Comes to Light
The next significant resistance for Filecoin is at around $6.77. Technical indicators pointed out that the current momentum could push the altcoin prices to test this key resistance, supported by the increasing OI-Weighted Funding Rate and a favorable market structure. The confluence of rising Funding Rates, strong liquidation volumes, and a break above key resistance at $4.83 painted a potentially bullish picture for Filecoin’s short-term price action.
Conclusion
In summary, Filecoin has successfully broken through its previous consolidation phase, unveiling a series of bullish indicators that present a strong case for continued upward momentum. Market participants are showing confidence through increased funding rates and healthy liquidation volume, setting the scene for potential testing of the $6.77 resistance level in the near future.
