• Filecoin forms bullish rounding bottom pattern, signalling potential trend reversal.
  • FIL surges 11%, trading volume spikes 152%, hitting $6.3.

Filecoin (FIL), a prominent altcoin ranked among the top 50 cryptocurrencies by market capitalization, has experienced a significant surge in the past 24 hours. The token’s price has risen by 11%, accompanied by a remarkable 152% increase in trading volume during the same period. Earlier today, FIL hit a 19-day high of $6.3, marking a robust recovery. Over the past seven days, the cryptocurrency has recorded a cumulative gain of 23%.

Can FIL Sustain Its 23% Weekly Gains? image 0 FIL Price Chart, Source: Sanbase

Moreover, FIL’s recent price action has formed a “rounding bottom” pattern , often referred to as a “saucer bottom.” This technical chart pattern is characterized by price movements that resemble a shallow bowl, indicating a potential long-term reversal in market sentiment. Such patterns often signify a shift from bearish to bullish trends, reflecting growing confidence among traders and investors.

Technical indicators further highlight FIL’s potential trajectory. The daily Relative Strength Index (RSI) stands at 59, indicating that the asset is approaching overbought territory. While this signals strong market momentum , it also serves as a caution for investors to remain vigilant.

FIL To Hit $9 Soon?

Key resistance and support levels for FIL have been identified, offering a roadmap for traders. The first resistance (R1) stands at $7.18, with a second resistance (R2) at $8.6. Conversely, support levels are pegged at $4.6 (S1) and $3.38 (S2). A decisive breakout above the R1 level could confirm a bullish trajectory for the token, while a drop below the support levels might signal renewed bearish sentiment.

Investors are advised to time their market entries carefully, as the rounding bottom pattern suggests a gradual but significant shift in the market. Should FIL maintain its upward momentum and break past key resistance levels, it could pave the way for sustained bullish growth. However, caution is warranted as overbought conditions may trigger short-term corrections.

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