- Filecoin’s monthly chart pointed to $10 EMA as a bullish target
- FIL registered weekly gains of 20.08%, while trading above the 50-week SMA
Filecoin’s price surged significantly this month, with its value climbing by over 68.3%. By doing so, FIL even recovered nearly half of its losses from it seven-month decline.
With a significant gap between its monthly and weekly moving averages at approximately $5 and $10, respectively, AMBCrypto analyzed whether this momentum could drive the altcoin towards its next moving average.
Will FIL sustain its momentum on the charts?
Filecoin, at the time of writing, was flashing strong bullish momentum on the charts, with its price climbing above key resistance levels. On the weekly chart, for instance, FIL was trading at $6.14 – Significantly above its 50-week exponential moving average of $4.97. In fact, this indicated a breakout from a prolonged downtrend.
The aforementioned breakout has resulted in gains of over 20.08% over the past week – A sign of growing buying pressure. The next key resistance lies near the 100-week EMA at $7.44. This means that there is room for further upward movement on the charts.
On the other hand, on the monthly chart, FIL exhibited a broader trend reversal with a press time price of $6.14 and gains of 68.3%.
Source: TradingView
The gap between the monthly moving averages highlights significant upside. The 50-month EMA seems to be positioned at $10.89, creating a target zone for a rally if bullish momentum persists.
Historically, prices tend to test the next moving average level once a breakout occurs, making the $10 zone a likely target. Similarly, the $5-level is emerging as a critical support zone for both weekly and monthly timeframes.
If FIL maintains closes above this area, it would solidify the bullish trend and set the stage for a swift move towards $10.
A breach below $5, however, could signal a loss of momentum and a retest of previous lows.
Positive AO, CMF indicate strong buying activity
At the time of writing, the 4-hour chart for Filecoin highlighted a bullish trend supported by key indicators. In fact, the price candles were above the Alligator indicator, with this alignment confirming an uptrend. Also, the widening Alligator lines alluded to greater momentum across the market too.
Source: TradingView
The Awesome Oscillator was firmly in the green too, registering a positive value of 0.443. This indicated growing bullish momentum, as the histogram bars continue to rise above the zero line. Market confidence and a hike in buying pressure depends on whether the histogram’s bars sustain themselves in the green over the next few days.
Finally, the Chaikin Money Flow indicator had a reading of 0.21 – A sign of strong capital inflows into the asset. Here, the positive CMF value confirmed consistent accumulation by market participants, with buyers exerting more influence than sellers.
DeFi ecosystem’s expansion
Filecoin’s cumulative TVL has steadily risen from its negligible levels in mid-2023 to over $90 million by late 2024. This growth is testament to the greater adoption of decentralized applications and protocols built on the Filecoin network.
In fact, a significant uptrend began in early 2024, with the TVL recording sharp surges in the second and third quarters.
Source: DeFiLlama
These hikes can be likely attributed to heightened activity in decentralized finance (DeFi) platforms utilizing Filecoin’s decentralized storage solutions. Also, to the growing interest in Filecoin’s staking and yield opportunities.
Filecoin’s outflows suggest long-term accumulation
Building on the rising Total Value Locked (TVL) in Filecoin’s ecosystem, the altcoin’s Spot inflows and outflows data further highlighted the increasing activity around FIL.
Source: Coinglass
The chart revealed a predominant trend of outflows from exchanges, as indicated by the consistent red bars. This pattern suggested that investors are steadily moving FIL into long-term storage or decentralized applications, aligning with the ecosystem’s expanding use cases.
Intermittent spikes in net inflows, shown in green bars, occur during key market events or price shifts. For instance, February and November recorded significant inflow activity, coinciding with a hike in trading volumes and price volatility.
Notably, the most recent price rebound was accompanied by sustained outflows – A sign of investor confidence and accumulation as the asset regained momentum on the charts.
