Filecoin Price Rally Signals a Strong Comeback Eye $5 Target

• Filecoin made a powerfull comeback from $1.275 support level surpassed the 50-day EMA and 200-day EMA mark.

• As per CMC data, FIL price is surged by almost 55% in last 24 hours and the trading volume is surged by 154% suggedting bullishness.

Filecoin has shown extraordinary strength in its most recent price action, and many crypto traders across have taken note of this remarkable recovery. According to CoinMarketCap data, the FIL price recorded approximately a 55% gain over the past 24 hours, combined with a 154% increase in trading volume, which should provide clear evidence of strong bullish activity in the altcoin.

In terms of the technical picture, it is easy to see a textbook breakout situation developing. After establishing solid support at the $1.275 price level, Filecoin successfully broke above both key moving averages. The price surged past the 50-day exponential moving average at $1.946 and the 200-day exponential moving average at $2.455, an impressive technical feat. This breakout above both EMAs is widely viewed as a strong bullish signal suggesting that a downtrend which had weighed on FIL for many months is likely reversing.

What Next For FIL Price?

The momentum indicators are also telling an equally positive story. The MACD indicator has gone positive, showing the MACD line crossing above the signal line, and the histogram shows an increase in bullish momentum as well. A ‘crossover’ like this probably indicates that more upside action is to come, and suggests buying pressure is building. At the same time, the RSI is up to an overbought level of 77.33, representing strong buying enthusiasm, but noting that there may be a period of consolidation or pullback forthcoming.

Investor sentiment has significantly flipped to the bullish side, with the sentiment meter nearing neutral at 0.092. This is a total reversal from the bearish sentiment that was present throughout October, when prices hovered close to multi-month lows. The sharp uptick in volume and price is indicative of actual buying interest and not just a technical bounce.

Going forward, expert are looking at the $5 price point as the next significant target for Filecoin. It is a psychological resistance level that, if surpassed, would probably mean much higher main price levels. However, because the rally has continued for a while, some consolidation around current levels would be nice before trying to push higher. A key level to watch on any pullbacks is the old resistance at the $2.455 point, where the 200-day EMA now resides.