- Filecoin’s weekly descending wedge pattern shows potential breakout above resistance, signaling a new bullish cycle for long-term traders.
- Short-term FIL rally from $2.00 to $4.00 demonstrates strong buying momentum with consolidation suggesting continued upside potential.
- Whale accumulation increased over 32%, exchange supply fell 15%, reflecting heightened demand and institutional participation in the market.
Filecoin (FIL) is showing strong momentum as price tests key resistance. Rising volume, whales continued accumulation and consolidation suggests the next breakout could push FIL higher.
Technical Indicators Point to Potential Breakout
Filecoin’s weekly chart shows a descending wedge pattern forming since its early 2021 peak. This structure compresses price action into converging trendlines, signaling potential bullish reversal. A recent strong bullish candle indicates a possible breakout above the wedge’s resistance.
A projection based on wedge height estimates a target near $71.46 from a breakout around $3.80, demonstrating potential upward movement. Analysts warn that weekly closes above resistance and rising volume are essential to confirm this breakout. Conversely, failure to maintain momentum could push FIL toward the lower boundary near $1.20–$1.50.
Short-Term Momentum Shows Strength
FIL surged from $2.00 to $4.00,accompanied by rising volume, confirming participation beyond isolated spikes. The short-term surge is consistent with bullish continuation patterns in volatile markets.
Source Altcoin Sherpa Via X
After retracing from $4.00, FIL entered a consolidation phase between $3.10–$3.50. This sideways movement was a balance between profit-taking and accumulation by traders. If Filecoin convincingly moves above $3.50–$3.60, $4.00–$4.20 is the next resistance zone, however a fall below $3.00 might see it revisit the $2.80–$2.60 range.
Market Activity and Institutional Interest
Data from CoinGecko shows that trading volume surpassed $1.4 billion. Grayscale’s increased holdings and Nansen’s data showing whale accumulation further emphasize market attention.All these reflect heightened investor interest.
Top FIL wallets have acquired over 32% more tokens, while exchange supply declined by nearly 15%. These trends suggest strong demand and reduced availability on trading platforms. Analysts also track breakout phases, noting volume spikes exceeding one million tokens confirm institutional participation.
Technical support remains above $2.15, with resistance near previous highs at $2.25. Hourly momentum continues bullish despite moderate volatility, and accumulation phases from $1.34–$1.38 through breakout rallies establish a stable new trading range for FIL.
