The upside potential in Filecoin (FIL) is tremendous, provided the breakout attempt succeeds.
Related – Analyst: Crypto Alt Season 2024 Is Here
Filecoin is catching headlines with groundbreaking news – a collaboration with Solana.
Solana’s integration with #Filecoin is a significant move away from centralized storage solutions and a remarkable step towards enhancing the reliability and scalability of the Solana blockchain.@solana is utilizing Filecoin to make its block history more accessible and usable… pic.twitter.com/1NcuaLNYT5
— Filecoin (@Filecoin) February 16, 2024
While the price of FIL was up after the announcement, it was a meaningless mini-pump. That’s because FIL continues to consolidate… until it is able to break out of its multi-year bottoming formation (consolidation).
Fundamentally, we like a lot what Filecoin is doing. It’s growing, it’s growth is widespread and global. The next visual says it all:
🌐@FilecoinStation nodes around the world. pic.twitter.com/7p3hItPWrw
— Filecoin (@Filecoin) February 18, 2024
Filecoin (FIL) is staging a breakout attempt
The word ‘breakout’ is used so often. What exactly does it mean for Filecoin (FIL)?
While breakout can mean many things, in the case of Filecoin’s breakout attempt it is very simple: Filecoin is turning its bottoming formation into a new uptrend.
There are a few concepts to highlight here:
- The bottoming formation is a consolidation. The one on Filecoin’s chart is long. The rule of thumb is this: the longer the consolidation, the higher the upside potential.
- The breakout, if successful, with result in a new uptrend. The new uptrend on Filecoin’s chart will start once FIL moves above the falling trendline.
- The breakout requires a confirmation. The confirmation is the most important thing to watch. FIL needs to trade for 5 to 8 consecutive days above 7.1 USD.
The Filecoin (FIL) chart below visualizes the key points made above.
Filecoin: LT bullish reversal, breakout should succeed
What is the probability of Filecoin’s breakout to succeed?
We deem the probability high. We believe that the Filecoin (FIL) breakout is likely going to succeed.
However, this does not mean that the Filecoin (FIL) breakout will be successful at its first attempt. It might take up to 3 attempts, spread over multiple weeks, until Filecoin’s breakout is confirmed.
The reason we firmly believe that this Filecoin (FIL) breakout will succeed, either now or a next attempt in the coming days, is the very bullish reversal pattern on Filecoin’s chart. Any seasoned chartist looking at the longer term chart setup of Filecoin will tell you that this is a widely and wildly bullish reversal.
Filecoin (FIL) upside target(s)
The question top of mind of investors is how high FIL can rise if/when Filecoin’s ongoing breakout is successful.
Well, there are some crazy upside targets. Honestly, Filecoin looks very bullish, powerful as well. Both, combined, result in high upside targets.
What matters is analyzing the Filecoin chart carefully, in a way to find the retracement levels. Those carry tremendously helpful insights. This is what we see on Filecoin’s chart in that respect:
- One obvious upside target is $33.33.
- For FIL to reach $33.33, it has to clear $9.55.
- It is clear that $9.55 will not give up easily, it will come with resistance. Similarly, significant resistance can be expected around $16.7.
- While both $9.55 and $16.7 will provide resistance, it is worth waiting because $33.33 is such an obvious target, to be achieved sooner or later.
All relevant Fibonacci retracement levels which are key for deriving the values mentioned above, are visualized with different colors on Filecoin’s chart shown below.
Is Filecoin the most promising token?
Let’s put it this way: Filecoin is a very promising token.
It can become a game changer, as an infra project, in the potentially disruptive new crypto trend: DePIN.
Now, admittedly, while we like Filecoin (FIL) a lot, we believe it has to be combined with two more tokens:
- The AI & Big Data trend is arguably larger, more powerful. We explained this in great detail in this article Crypto And AI Can Help You To Build Next Generation Wealth.
- It is justified to allocate a very small position to a potential 100-bagger token for the long term (we tipped a 100-bagger candidate in this crypto alert available in the restricted research area of our site).
Stated differently, it makes so much sense to combine Filecoin (part of a new larger trend) with a few AI coins and one potential 100-bagger token, in a diversified crypto portfolio.
