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- Filecoin ($FIL) experienced a significant price increase of over 68.3% this month, recovering nearly half of the losses from a 7-month decline. Currently, the price is above the major resistance level, showing a strong bullish trend. The next resistance level is at $7.44, close to the 100-week EMA; if the bullish trend continues, the target could be $10.
- Key indicators like Awesome Oscillator and Chaikin Money Flow show active buying. Additionally, the dollar DeFi ecosystem of Filecoin is expanding, with expectations that by the end of 2024, the Total Value Locked (TVL) will exceed $90 million, indicating further adoption of decentralized applications. The outflow trend from exchanges suggests a long-term accumulation by investors, consistent with the growth of the ecosystem.
Filecoin's price has soared this month, climbing over 68.3%. In doing so, FIL has even recovered nearly half of the losses from its seven-month decline.
Due to the substantial gaps of approximately $5 and $10 between the monthly and weekly moving averages, AMBCrypto analyzed whether this momentum will drive altcoins toward the next moving average.
Will FIL maintain its momentum on the chart?
Filecoin, at the time of writing, shows strong bullish momentum, with its price climbing above key resistance levels. For example, on the weekly chart, FIL is trading at $6.14, well above the 50-week exponential moving average of $4.97. In fact, this indicates a breakout from a long-term downtrend.
The aforementioned breakout led to a rise of over 20.08% in the past week - a sign of increased buying pressure. The next key resistance level is around the 100-week moving average at $7.44. This suggests that there is further room for upward movement on the chart.
On the other hand, on the monthly chart, FIL exhibits a broader trend reversal, with a current price of $6.14, reflecting a 68.3% increase.
Source: TradingView
The gap between monthly moving averages highlights significant upside potential. The 50-month EMA appears to be at $10.89, creating a target area for a rebound if bullish momentum persists.
Historically, once a breakout occurs, the price tends to test the next moving average level, making the $10 area a possible target. Its $5 level is becoming a key support zone on weekly and monthly timeframes.
If FIL closes above this area, it will consolidate the bullish trend and set the stage for a quick move towards $10. However, falling below $5 could indicate a loss of momentum and a retest of previous lows.
Positive AO and CMF indicate strong buying activity
At the time of writing, Filecoin's 4-hour chart highlights a bullish trend supported by key indicators. In fact, the price candles are above the Alligator indicator, and this alignment confirms the upward trend. Additionally, the increasing Alligator production line also suggests greater momentum in the overall market.
Source: TradingView
The Awesome Oscillator is also firmly in the green, recording a positive value of 0.443. This indicates that bullish momentum is growing, with histogram bars continuing to rise above the zero line. The increase in market confidence and buying pressure depends on whether the histogram bars remain green in the coming days.
Finally, the Chaikin Money Flow indicator reading of 0.21 indicates strong capital inflow into assets. Here, the positive CMF value confirms the ongoing accumulation by market participants, with buyers exerting greater influence than sellers.
Expansion of the DeFi ecosystem
Filecoin's cumulative TVL has steadily risen from negligible levels in mid-2023 to over $90 million by the end of 2024. This growth demonstrates that decentralized applications and protocols built on the Filecoin network are gaining greater adoption.
Indeed, a noticeable upward trend began in early 2024, with TVL soaring significantly in the second and third quarters.
Source: DeFiLlama
These increases may be attributed to the increased activity of decentralized finance (DeFi) platforms leveraging Filecoin's decentralized storage solutions. Additionally, there is growing interest in staking and yield opportunities for Filecoin.
Filecoin outflows indicate long-term accumulation
Based on the continually rising Total Value Locked (TVL) in the Filecoin ecosystem, the spot inflow and outflow data for altcoins further highlight the increasing activity around FIL.
Source: Coinglass
The chart shows the main trend of outflows from exchanges, indicated by consistent red bars. This pattern suggests that investors are steadily moving FIL into long-term storage or decentralized applications, aligning with the expanding use cases in the ecosystem.
Intermittent peaks in net inflow (shown in green bars) occur during key market events or price changes. For example, large inflows were recorded in February and November, coinciding with increased trading volume and price volatility.
Notably, the recent price rebound is accompanied by continued outflows - a sign of investor confidence and accumulation as Filecoin regains momentum on the chart.
