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Filecoin: Why $3.38 level could make or break FIL in the short-term
The price of Filecoin (FIL) has been fluctuating over the past 24 hours, with a modest 0.50% increase to trade at around $3.37 at the time of writing. This recent surge may signal a turning point for the asset, as it approaches a crucial support level that could either catapult it to new heights or trigger a sharp decline.
According to technical analysis, if FIL manages to hold its ground above the $3.38 mark, there is a possibility that it could soar by 20% to reach $4.05. However, should the asset drop below this threshold and close a four-hour candle below $2.92, a significant decline of 14% may be on the horizon.
Intraday traders have been aggressively buying Filecoin, with data from Coinglass revealing that they were over-leveraged at the $3.32 level, totaling $1.31 million in long positions. Conversely, short sellers were heavily invested at $3.42, holding $268,620 in short positions.
This stark contrast highlights the intense speculation surrounding Filecoin, as traders and investors are divided on its future prospects. The bears have been pushed to their limit, with sentiment shifting towards optimism in favor of FIL.
Moreover, long-term holders have also been buying into the asset, as revealed by Spot Inflow/Outflow data showing an outflow of FIL tokens worth $1.30 million in the past 24 hours. This accumulation by investors and long-term holders may create a buy signal, leading to further upward momentum.
It is crucial that Filecoin holds above the critical $3.38 mark to maintain its current trajectory and potentially propel it towards new highs.
Source: ambcrypto.com
