Filecoin (FIL) is on the verge of a breakout and experiencing a surge in its price with the overall market. Now the FIL is forming a descending triangle pattern, which often leads to a bullish reversal. If a successful breakout occurs, it will lead to a maximum target around the $11.40 area.
At the time of writing, FIL is trading at $2.57 with a 24-hour trading volume of $268.1 million and a market capitalization of $1.76B. The FIL price over the last 24 hours is up by 7.73% and over the last week it is up by 6.13% and showing high potential for the next major rally.
Filecoin targets $11.40 after descending triangle formation
A prominent crypto analyst, Jonathan Carter, highlighted that Filecoin (FIL) is holding support of the lower end of a falling triangle formation on the weekly chart, which tends to result in a decisive break. Buyers are defending key points, while overall market momentum remains muted. If support continues to hold, analysts are of the opinion a reversal may be just around the corner.
A rise above the 50-week moving average (MA 50) will be a significant signal showing bearish pressure losing steam. Such a breakout might change sentiment and induce a fresh bullish trend, which will lead to higher targets. Chartists are monitoring this line as a potential turning point of FIL.
On a successful break, the targets are set at $4.30, $6.40, $8.40, and $11.40, which are simply waypoints from which the trade may be exited or new positions initiated by the trader. These targets are the potential gain if the momentum swings in the direction of Filecoin.
In spite of the overall market frailty, the on-chain data indicates the smart money is stealthily building into FIL, lining up prior to the potential move higher. Whilst risk lies if support dips, the setup indicates Filecoin’s overdue for an inflection point. The subsequent one to two weeks will decide if the infusion causes FIL to surge higher towards $11.40 or drift downwards under bearish pressure.
