- Filecoin (FIL) has already stabilized above the support of $1.62 indicating that it has strength among short-term buyers.
- The range of $1.78 2.30 is also important to determine the recovery momentum in the dropping channel.
- Any breakout of more than $ 2.30 would result in FIL following the greater downward trendline closer to $4.60 to $4.70.
Filecoin (FIL) is recovering with a new momentum after bouncing back to a very critical support level of approximately $1.62. The token, now trading at $1.63, has fallen 0.7 per cent. in the past week, indicating market-wide reservedness, in spite of accumulation indications. Compared to Bitcoin, FIL is 3.4% higher at 0.00001480 BTC which represents progressive relative momentum.
The existing arrangement is after several months of incessant downtrend in a downward channel that has been tracking the price since the beginning of the year, 2024. The traders are now keenly observing the chances of short-term reversal confirmation due to the price activity that has settled down at the lower support.
FIL Approaches Key Resistance After Bounce From $1.62 Support
After the recent recovery, FIL/USD is trapped in a wide-range downward structure. The asset has just been able to protect its level of $1.62 of the asset, which was a strong accumulation zone. The region still remains an important point of reference to traders who are hoping to recover.
The first line of resistance is at $1.78 and it coincides with short-term compression of the price on the daily chart. The long-term action beyond this resistance would provide an opportunity to enter the area of $2.30 as the next technical target. It is noteworthy that this range is the same as the middle of the channel, and this region has historically limited various recovery efforts.
However, until a clear breakout materializes, volatility around current levels may persist. The overall trend remains downward, yet tightening price action suggests that downside pressure is gradually easing.
Broader Structure Points Toward Upper Trendline at $4.60
Technical forecasts show that in case the resistance level of $2.30 is violated, FIL may revisit its falling pattern zone of $4.60 to $4.70 during the next several sessions. This area is one of the long term structural boundaries and has served as the high point of the present down trend many times.
The arrangement resembles the corrective periods in the past where recoveries came after strong sell-offs and long periods of consolidation. Participants in the market frequently view such rebounds as structural relief in its early phases especially when backed by rising trading volume.
Market Focus Shifts to Confirmation of Recovery Momentum
Market participants now await confirmation that recent price strength can translate into a sustained uptrend. Daily momentum has started to build, yet resistance tests will determine whether FIL can establish higher lows in the near term.
In the meantime, the $1.62–$1.78 range remains pivotal for short-term direction. A firm close above this zone could reinforce confidence in continued recovery toward $2.30 and potentially beyond, while failure to hold support could return FIL to earlier consolidation levels.
