FileCoin Price Climbs from Key support, targets a 25% increase

Summary:

The Filecoin price has overcome several significant obstacles in the last few days indicating a fresh assault on $90 is on the horizon.

The Filecoin price has overcome several significant obstacles in the last few days, indicating a fresh assault on $90 is on the horizon. During last weeks sell-off, Filecoin (FIL) bounced from the 2021 uptrend, bursting through trend resistance and clearing the 100-day moving average. As a result, the technical outlook has improved dramatically. However, Filecoin must overcome the 200 DMA at $90.40 for the bulls to claim victory.

Like much of the market, the Filecoin price is trying to recover from the vicious onslaught in September. In the second half of the month, the market adjusted sharply lower as China tightened the screws even further, declaring all crypto-related activities illegal. The pressure was felt immediately, with Bitcoin (BTC) sliding below $40k, sending altcoins hurtling lower. Filecoin dropped to $50 o the 26th, almost 60% below the early-September $123 high. Encouragingly, FIL has turned higher, and there are signs the recovery may have more room to run.

FIL Price Forecast

The daily price chart shows that Filecoin has broken out of a descending triangle pattern, which is undoubtedly bullish. Furthermore, FIL continues to trade above the 100-day moving average at $66.14. However, the 50 DMA at $76.14 is proving sticky and so far has been unscalable. Should FIL clear the 50 DMA, the path to the 200 DMA at $90.40 is clear. Furthermore, a broader market recovery could see Filecoin exceeded $90.04 and extend towards the September high.

However, in general, the market remains fragile, and until Bitcoin convincingly clears $50k, doubts will remain, and on that basis, a reversal is possible. The bullish outlook remains in place as long as Filecoin maintains the uptrend. Therefore, a drop below trend support at $48.50 invalidates the bullish view.