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Filecoin (FIL) Price Positioned for 35% Increase, What’s Driving It?

The price of Filecoin (FIL) has rebounded from the previous resistance zone, showing decisive bullish signals. It is expected to continue rising in the near future.

Weekly Outlook

The price of Filecoin (FIL) dropped after reaching its yearly high at $8.1 in the first week of 2024. This action brought the price back to the previous horizontal resistance zone at $4.6.

In the week from January 22nd to 28th, 2024, the FIL price bounced back from this zone, forming a bullish Pinbar candle (green arrow). This is a positive signal as it shows that the bulls are buying on the dip back to the breakout level.

This bullish signal is reinforced as FIL created a bullish engulfing pattern in the previous week (green ellipse).

The weekly RSI has risen from the 50 levels, creating a bullish divergence, often leading to a continuation of the uptrend.

Therefore, the FIL price may rise to the yearly high resistance level of $8.1 in the near future. This represents an increase of 35.53% from the current price.

FIL/USDT weekly chart . Source: TradingView

End of Short-Term Correction

The daily chart shows that the FIL price has broken above a small horizontal support zone at $5.3, confirming it as support on February 12th (green arrow).

This indicates that the correction from the yearly high has ended, and FIL is in another bullish phase.

The daily RSI is above 50 and trending upward, signaling that the bulls are in control of the market.

Therefore, the FIL price may rise to the nearest horizontal resistance zone at $6.5 in the coming days.

FIL/USDT daily chart . Source: TradingView

Conclusion

The most likely outlook suggests that the FIL price will continue to rise in the near future. The immediate target is $6.5, and further upwards to $8.1.

The bullish perspective may be invalidated if the FIL price drops below the $5.3 support zone on the daily timeframe.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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