Filecoin (FIL) Continues Recovery, Gains 16% In A Single Day

Filecoin (FIL) made a positive start in July. The cryptocurrency has been experiencing a substantial price increase over the past 24 hours. According to CoinGecko data, FIL has increased in value by 16.47% in the past day, propelling its price to $4.73. FIL is the native token of the decentralized Filecoin network, an open-source cloud storage protocol designed for easy data storage and retrieval. Related Reading: Shiba Inu Leads With Highest Number of Fake Twitter Followers, Data Reveals Filecoin In June – Price Action The FIL price started the month trading at $4.693. The token’s value dipped after touching the $5 price level, losing as much as 34% before June 10. However, the FIL price has steadily risen since this sharp decline, gaining more than 52% in the past few weeks. It is worth noting that Filecoin moved sideways towards the end of June, with the token’s price hovering around $4. That said, FIL appears to have resumed its bullish course, having soared more than 20% since the beginning of July. Most of this price increase is due to today’s spike, which has pushed Filecoin to reclaim its price level seen in early June. As of this writing, Filecoin (FIL) changes hands at $4.73, according to data from CoinGecko. The cryptocurrency has a 24-hour trading volume of over $530 million, representing a 434% surge in the past day. The recent price upswing of Filecoin (FIL) has also positively impacted its market capitalization, with a market cap of more than $2 billion USD. What’s Next For FIL? It remains to be seen how long this current price rally will last, especially as the daily Relative Strength Index (RSI) nears the overbought zone. The RSI is a momentum indicator that tracks a token’s oversold and overbought levels. When the RSI enters the oversold region, it signals that the token’s price is losing momentum, and a reversal might be on the horizon. Additionally, Filecoin is at the key resistance level of $4.8 on the daily timeframe. If FIL breaks this threshold, the token is expected to continue its bullish run, leading to further price appreciation. On the flip side, if FIL fails to break the $4.8 resistance level, we could see the coin fall to the $2.941 support level. Meanwhile, the 200 EMA (Exponential Moving Average) also acts as a dynamic resistance for the Filecoin price, posing a barrier to upward movement, as seen on the chart below. Hence, the bullish run may not continue until the price of FIL moves above the 200 EMA. FILUSD at the $4.8 resistance zone | Source: FILUSD chart from TradingView Related Reading: Historical Litecoin Bearish Signal Goes Off, Correction Incoming? Featured image from iStock, chart from TradingView