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- FIL finds near-term support at $2.4 with resistance at $3.6.
- On-chain sell-offs contrast with bullish exchange sentiment.
- Open Interest and funding rates favor bulls in derivatives markets.
Filecoin ($FIL) is at a pivotal juncture following a steep correction that erased part of its recent gains. After a week-long rally that delivered a 56% return, the storage-focused altcoin dropped 14% in a single day, reflecting mixed market sentiment and growing investor caution.
Investors Shift to Caution
On-chain activity shows a notable shift from optimism to caution. Over the past 24 hours, investors offloaded approximately $5.5 million worth of FIL, contributing to a sharp decline in the total value locked (TVL) on the network, according to DeFiLlama.
While the TVL fell, the Stablecoin market on Filecoin saw a 53.16% increase over the week, reaching roughly $408,000. This trend suggests that many investors are temporarily parking funds in stable assets, waiting for lower volatility before re-entering the market.
Exchanges Maintain Bullish Outlook
Despite the pullback, traders on major exchanges remain largely bullish. Binance reports a Long/Short Ratio of 1.29, while OKX shows an even stronger 1.8, indicating more traders are betting on price gains. Together, these two exchanges control nearly 45% of FIL’s derivatives liquidity, underscoring their influence on price direction.
The Open Interest Weighted Funding Rate further supports bullish sentiment, currently positive at 0.0064%, signaling that the majority of active contracts favor upward momentum.
Key Levels to Watch
Technical indicators highlight $2.4 as a critical near-term support level, with dense liquidation clusters identified below this mark. Should the price dip to this zone, FIL may stabilize and provide a potential entry point for buyers.
On the upside, if bullish momentum returns, FIL could target $3.6, the current resistance level, as traders push to reclaim lost ground. The altcoin’s next move largely depends on which camp—bulls or bears—dominates near the $2.4 threshold.
Filecoin remains in a volatile phase, with near-term support at $2.4 and resistance at $3.6. Investors are weighing short-term caution against longer-term bullish potential. Market participants will be closely watching exchange activity and open interest metrics for signals of the next significant move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Filecoin (FIL) Surges 44% This Week: Key Resistance Levels and Market Outlook
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