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Filecoin: Why $3.38 level could make or break FIL in the short-term
As the cryptocurrency market continues to experience significant price declines amid ongoing uncertainty, the top-tier Decentralized Physical Infrastructure (DePIN) crypto project, Filecoin [FIL], has reached a crucial support level that will determine its future trajectory.
Current price momentum reveals that Filecoin was trading near $3.37 at press time and recorded a modest 0.50% gain in the past 24 hours alongside a remarkable 16% surge in trading volume. This spike indicates growing interest from traders and investors due to the formation of bullish price action.
Filecoin’s price action and upcoming levels
According to AMBCrypto’s technical analysis, Filecoin formed an ascending triangle pattern in the four-hour timeframe. However, the recent price drop has pushed the asset’s price to reach the ascending trendline support, creating a make-or-break situation for the token.
Should Filecoin manage to hold its ground at $3.38, it is likely to surge by 20% and potentially touch $4.05 in the short term. Conversely, if FIL fails to maintain this level and closes below $3.30, it could drop by 14% to reach $2.92.
Currently, Filecoin’s price action is indicating a downtrend as it trades below the 200-day Exponential Moving Average (EMA).
Bullish on-chain metrics
Despite the critical juncture, intraday traders are taking long positions in Filecoin, with data from Coinglass revealing that they were over-leveraged at $3.32, holding an impressive $1.31 million in long positions. In contrast, short sellers were heavily leveraged at $3.42, maintaining a total of $268,620 in short positions.
Notably, the data highlights the dominance of bulls in the market despite prevailing negative trends. Furthermore, long-term holders are accumulating tokens, as revealed by Spot Inflow/Outflow statistics that show exchanges witnessing an outflow of FIL tokens worth $1.30 million within the last 24 hours. This buying pressure can fuel further upside momentum.
The author is a Mumbai-based journalist with five years of experience covering technology and finance, having earned his Master’s in Economics from the University of Delhi.
Source: ambcrypto.com
