Over the last few days, the Filecoin price has risen significantly. The altcoin has gained more than 80% in the last week alone, breaking through multiple levels of resistance. On a daily basis, FIL increased by 24%.
In terms of development, Filecoin plans to release a Filecoin Virtual Machine (FVM) in the coming month. This advancement will provide smart contract capabilities. This enhancement will help to boost and accelerate the token’s value in the coming days.
Filecoin’s technical outlook has been quite optimistic, with a significant increase in demand. Buyers were in abundance as both demand and accumulation for the altcoin increased significantly over the last two weeks.
Yet, it is too early to determine whether the price of Filecoin will continue to grow, as a price correction cannot be ruled out. If FIL is to maintain an optimistic stance, it must continue above a few key price levels.
The market capitalization of Filecoin increased, indicating that purchasers were in high demand throughout the time of publication.
Despite an 80% price increase, Filecoin is still 96% below its all-time high, which it achieved in 2021.
FIL has visited the overpriced zone three times since crossing the $7 threshold. Filecoin is currently overbought. The Relative Strength Index was at 80, indicating that buyers outnumbered sellers.
Overbuying tendencies typically result in some type of price retracement as a result of a price correction. In that circumstance, Filecoin must hold above the $7.40 support level.
On that point, the altcoin was trading above the 20-Simple Moving Average (SMA), indicating that buyers were controlling the market’s price momentum.
Additional technical indicators showed that the bulls were out in force at the time of writing. Price momentum and change are indicated by the Moving Average Convergence Divergence indicator. The indicator produced green signal bars that corresponded to buy signals.
Price increases are frequently followed with buy signals. The Directional Movement Index (DMI) measures price movement.When the +DI (blue) line passed over the -DI (orange) line, DMI was positive. The Average Directional Index (red) was approaching the 40-point line, indicating that a bullish trend was developing on the chart.