Filecoin (FIL) has been going through a significant downturn pressure for some time now. Today, data reported by market analyst Ali Martinez highlighted that the token is holding above a critical support level. This suggests that FIL might be on the verge of a significant price trajectory soon.
Filecoin holds support at $3.14-$2.9
Filecoin has been seeing significant declines over the past month. Today, Martinez posted on X that the asset is holding above crucial support levels that could decide its next major price movement.
As per Martinez’s technical chart, FIL’s price is currently standing at $3.12. Its recent price actions show that the asset appears to holding firm around the key support levels of $3.14 and $2.9.
For the past five days, Filecoin formed a bullish triangle pattern, which has been sustaining its price above the $2.9 support level to its current price near $3.12. The price stability around this zone reflects a buy activity by investors. This shows a potential buying opportunity around these areas where the market finds its support zones between $2.9 and $3.14.
Those who are contributing to this bullish sentiment are whales and large holders who are buying massive amounts of Filecoin. If Filecoin could maintain its price above these support levels, it may trigger a further surge toward the resistance level at $3.55.
FIL price updates
Filecoin has been experiencing a difficult market environment over the past month, coinciding with the wider downtrend in the digital asset market. Its price has been down 32.0% over the past 30 days.
Despite this slump, recent price actions show that Filecoin could be preparing to make a potential breakout from its ongoing downtrend. It has been displaying improvements indicated by a gradual decrease in its downturn. While the asset has been down by 8.7% over the past two weeks, it saw a price decline of 5.0% over the past week. Today, the asset is trading at $3.18 after seeing a rise of 2.4% over the previous day.
This shows that the token is witnessing small recoveries as days unfold. However, for this recovery to show a true breakout, Filecoin must move above critical resistance levels. A rise to the resistance zone of $4.33 and $4.50 would suggest a change in trend, indicating that a breakout from the downturn could be imminent. Furthermore, its ability to maintain above the support level at $2.93 could further unfold uptrend prospects.
The major factor behind Filecoin’s price jump is the buying pressure, which is gaining strength against selling. Heightened market participation, especially from whales and long-term holders, helps to maintain its price. Data from Coinalyze shows that Filecoin Open Interest (IO) has risen by 2.6% over the past 24 hours. The surge in OI shows that more traders are creating positions in the asset hoping for future price increases. This activity suggests investors’ confidence in the token’s long-term growth potential.
