The Filecoin price has seen a massive surge in the past week, appreciating by more than 80%. This has been accompanied by a 24% surge on the daily chart. The recent developments in the Filecoin network have been extremely bullish, with a major surge in demand and accumulation for the altcoin.
The Filecoin Virtual Machine (FVM) is set to launch in the upcoming month, offering smart contract capabilities. This could further amplify and accelerate the value of the token in the coming days. The market capitalization of Filecoin has also gone up, indicating a high number of buyers in the market.
Despite the sharp rally, Filecoin is still trading 96% below its all-time high, which it secured in 2021. On the technical front, the coin has breached the $6.36 price resistance level, flipping it into support. The immediate resistance for the coin is at $9.80, with a move above this level taking it to $10.70.
The coin needs to remain above two important support levels, between $7.40 and $6.30, to maintain a positive stance. If it falls below $6.30, it could fall to $5.69. The Relative Strength Index (RSI) is currently in the overbought zone, indicating that a price correction could take place.
The Moving Average Convergence Divergence (MACD) indicator has formed green signal bars, which are related to buy signals. Buy signals are often accompanied by a further increase in price. The Directional Movement Index (DMI) is also positive, with the +DI (blue) line crossing above the -DI (orange) line.
Overall, the technical outlook of Filecoin has remained extremely bullish, with buyers dominating the market. The launch of the Filecoin Virtual Machine could further amplify and accelerate the value of the token over the coming days. However, it is important for the coin to remain above the important support levels in order to maintain a positive stance.