Filecoin eyes $6.77 as FIL breaks major resistance level: What’s ahead?

• Filecoin surges past the $4.83 resistance level with a heavy liquidation pool of 283.74K.
• The Long/short Ratio and Funding Rate suggested a continuation of the bullish run.

Filecoin [FIL] has finally broken above the consolidation pattern that it has been confined to for months, a move considered by many analysts as a significant technical breakout. 

The altcoin’s price action is showing clear signs of decisively moving above the resistance level of $4.83, which has limited the upward movements since the 4th of July.

This breakout comes with substantial market validation, as evidenced by the recent price action, which reached $5.727 at press time.

The recent 20.07% surge since breaking past the resistance level in the past 48 hours indicates that the rally is far from over. The rally leaves the altcoin just 16% shy from the key resistance in line at $6.77.

Growing confidence in Filecoin

AMBCrypto analysis of Coinglass data indicated that Filecoin’s OI-Weighted Funding Rate has maintained a positive trajectory, reaching new local highs.

This suggested growing market participant confidence in FIL’s upward movement. 

The sustained positive Funding Rate suggested that Filecoin’s long-position holders were willing to pay a premium, reflecting their bullish outlook on Filecoin’s near-term price action.

Liquidations also leans bullish

Also, recent liquidation data from Coinglass indicated a huge liquidation pool of 283.74K at the $6.262 price level, which pointed to intense market participation during the breakout.

This further created a market bullish bias that could fuel the rally.

That is not all; the Long/Short Ratio indicated a balanced distribution with a slight bias toward longs. So, Filecoin’s rally still has room for extension before reaching excessive leverage levels.

$6.77 resistance comes to light

Interestingly, the next significant resistance in line for Filecoin is at around $6.77 price level.

Read Filecoin’s [FIL] Price Prediction 2024–2025

Technical indicators pointed out that the press time momentum could push the altcoin prices to test this key resistance, supported by the increasing OI-Weighted Funding Rate and a favorable market structure.

The confluence of rising Funding Rates, strong liquidation volumes, and a break above key resistance at $4.83 painted a potentially bullish picture for Filecoin’s short-term price action.