Filecoin underwent a drastic pullback and maintained a bearish consolidation in the past few months, due to which the resistance has lowered to a large extent. In times when the market participants had left hope for a decent upswing, the token displayed a notable rise. With this, the FIL price can maintain an elevated trend as the technicals also support the bullish narrative.
The FIL price has been trading within a bullish range regardless of the interim bearish pressures that have been compelling the token to shed some gains. However, the current trade setup suggests the price is utilizing all its strength to rise above the consolidation. If the breakout materialises, then a 30% upswing could be imminent.
The FIL price is trading within a rising, expanding channel but is consolidating along the lower support of the channel. However, the RSI continues to range within an ascending parallel channel, which suggests the rally continues to hold strength. Therefore, the FIL price is expected to maintain an ascending consolidation and rise above $6.7 initially, which may extend above $7 in the next few days.
On the other hand, the Ichimoku cloud, which suggests potential entry and exit points, has just reached the end of the bearish trend. However, the cloud has not yet flipped into a bullish trend but the end of descending consolidation may pave the way for a healthy upswing ahead. Besides, the volume is slowly growing, indicating the Filecoin price could rise and achieve higher targets before the end of the month.
