Filecoin (FIL) Price Prediction: FIL Finally Breaks Above Consolidation Pattern, Can It Hit $6 By Weekend?

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.

After months of consolidation, Filecoin [FIL] has finally managed to break above the pattern, a move that many analysts have highlighted as a key technical breakout.

The altcoin’s price action on the 4-hour chart showed clear signs of decisively moving above the resistance level of $4.83, which had been limiting the uptrend since 4 July.

This breakout was also accompanied by strong market validation, as the recent price action saw the altcoin reach levels of $5.727 at the time of writing.

A 20.07% surge in the past 48 hours after breaching the resistance indicated that the rally had further to go. At press time, FIL was trading at $5.81 with a 19.21% 48-hour gain.

Filecoin’s OI-Weighted Funding Rate has maintained a positive trajectory, reaching new local highs. AMBCrypto analysis indicated that this signaled growing market participant confidence in FIL’s upward movement.

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

Recent liquidation data from Coinglass showed a large liquidation pool of 283.74K at the $6.262 price level, indicating intense market participation during the breakout.

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

Interestingly, the Long/Short Ratio indicated a balanced distribution with a slight bias toward longs, suggesting that Filecoin’s rally still had room for extension before reaching excessive leverage levels.

The next significant resistance in line for Filecoin was at the $6.77 price level. Technical indicators showed that the momentum at press time could push the altcoin prices to test this key resistance, supported by the increasing OI-Weighted Funding Rate and a favorable market structure.