Important points
What triggered Filecoin’s recent price spike?
The gathering was driven by hype about DePIN Day and strategic partnerships to advance decentralized infrastructure.
Can Filecoin maintain its bullish momentum?
If buying pressure continues, FIL could target $2.6, but heavy profit-taking could push it back to $1.7.
After Filecoin hit a local low of $1.2, [FIL] The price finally broke out of the month-long consolidating range and hit a high of $2.29.
At the time of writing, Filecoin is up 68.92% on the daily chart and trading at $2.215, reflecting strong bullish pressure.
During the period, altcoin trading volume increased by 901% to $1.56 billion, indicating stable capital flows.
But what’s behind this sudden increase?
Filecoin DePIN Day sparks market speculation
Importantly, Filecoin rose amid a sector-wide breakout across the Decentralized Physical Infrastructure (DePIN) network.
In fact, according to CoinMarketCap, DePIN’s market capitalization increased by 6.45% to $30.1 billion, while trading volume increased by 76.8% to $6.7 billion.
This sector-wide breakout was inspired by the much-anticipated DePIN Day in Buenos Aires on November 18th.
At this event, Filecoin partners including Protocol Labs will discuss decentralized data infrastructure and enterprise integration.
In addition to that, Filecoin Foundation announced a partnership with GSR Foundation to fund projects supporting decentralized storage.
Under this cooperation, both parties will promote projects related to the interests of humankind, including human rights, science, and the arts.
speculators jump into the market
What’s interesting is that investors positioned themselves in the market as the hype around DePIN Day grew.
The GSR Foundation’s announcement once again confirmed investors’ bullish momentum. As a result, demand for futures positions skyrocketed.
In fact, at the time of writing, derivatives trading volume rose 819% to $3.57 billion, while open interest rose 115.8% to $275.23 million, according to data from CoinGlass.
Source: Coin Glass
Typically, when these two spike at the same time, it reflects increased market participation and capital inflows.
Meanwhile, the long-short ratio has surged to 1.02, indicating that most investors have jumped into the market to take long positions.
Therefore, most of the derivatives participants were very bullish and expected prices to rise.
Profit amount reaches record high
Unsurprisingly, after Filecoin hit a monthly high, underground investors and holders rushed to the market to cash out.
According to Coinalyze, sellers have dominated the market since Filecoin attempted a rebound a few days ago.
Source: CoinAnalyze
In fact, over the past 24 hours, Filecoin had 88.25 million sales, reflecting sustained profit-taking activity in the market.
Furthermore, foreign exchange trading also reflected this tendency to take profits. According to CoinGlass, Filecoin’s spot net flow soared to an all-time high of $6.45 million on November 6th.
Source: Coin Glass
Since then, it has fallen significantly, down to $2.36 million at the time of writing, further indicating an increase in inflows.
Typically, increased profit taking accelerates downward pressure on assets, causing prices to fall.
Can the bull hold and aim even higher?
According to AMBCrypto, Filecoin rebounded after breaking through the $1.70 resistance level, with significant buyer intervention confirming a bullish reversal.
As a result, the altcoin’s Sequential Pattern Strength (SPS) has soared to 29.3 at the time of writing, indicating a strong buyer advantage. Similarly, the Relative Strength Index (RSI) also jumped to 66, further supporting this bullish shift.
Source: TradingView
Typically, when these indicators reach such levels, they indicate a likely continuation of the trend, holding the prevailing factors constant.
Therefore, if these conditions hold, Filecoin will reclaim $2.4 with $2.6 as the next important resistance level. However, if profit-taking overwhelms speculators and momentum weakens, FIL will move back towards $1.7.