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- A solid bullish defense at the key support level resulted in a significant price reversal.
- Positive funding rates could lead to further gains in the short term.
Filecoin [FIL] again defended the $3 support level and recovered strongly with a 12% gain. AMBCrypto’s previous price analysis highlighted the long opportunity from the support level, based on available liquidity in the critical price zone. This projection was validated as buyers posted a solid bullish reversal.
Read Filecoin’s [FIL] Price forecast 2023-24
More gains are possible if the bulls overcome this hurdle
Source: FIL/USDT on Trading View
At the time of writing, bullish momentum was clearly visible with multiple indicators showing bullish signals.
The Relative Strength Index (RSI) crossed the neutral 50 and rose towards the overbought zone to highlight strong buying pressure. Similarly, On Balance Volume (OBV) saw a decent increase while Chaikin Money Flow (CMF) remained above zero, indicating good capital inflows.
The mix of the bullish price action and positive indicators suggested that more gains for FIL were likely in the near term. However, the $3.5 hurdle must be cleared as this resistance level has rejected previous bullish rallies.
If bulls can scale this resistance level, further gains could be achieved from $3.8 to $4. Otherwise, a price rejection at $3.5 will extend the price move within the range.
Positive funding rates revealed a bullish bias in the futures market
Source: Coinalyse
Along with the bullish price action, most traders in the derivatives market continued to bet on the price rise of FIL. From Coinalysethe funding rate for FIL was positive, reflecting the dominance of bullish long positions.
How much are 1,10,100 FILs worth today?
In addition, Open Interest (OI) increased from $73.4 million to $77.3 million. This was another sign of a short-term bullish bias, with further upward movement possible.