Filecoin (FIL) posted a significant rally this October 21st, surging over 4%. The decentralized storage asset managed to anchor at $1.65. This move is key, as it confirms that Filecoin (FIL) consolidates above $1.60, a previous resistance level. The momentum changes the outlook for traders.
Data from CoinMarketCap shows this rally extends the recovery from the previous day. On Monday, FIL gained 3.87% by moving from $1.52 to $1.58. This movement affects investors and storage providers. It also impacts developers who require FIL liquidity.
Today’s jump was not an isolated event. The asset showed high volatility in previous sessions, alternating rapid rises and falls. Technical analysts had set key supports at $1.52 and $2.08. Meanwhile, benchmark resistances were located at $1.65, $3.00, and $10.23. Breaking the $1.60 ceiling changes the market reading. The project’s market capitalization currently hovers between $1.4 billion and $1.8 billion. The asset remains far from its $237 all-time high, reached in 2021.
Filecoin is more than a speculative asset. It is the native token of a decentralized storage network. Users rent disk space in exchange for FIL tokens. This real-world use case links the price directly to activity on its blockchain. Therefore, a stable price is vital for network participants. They require FIL liquidity to operate efficiently.
Is this the sign of a lasting recovery for FIL?
If FIL remains above $1.65, it will attract the attention of short-term traders. This supports a general bullish bias as long as Filecoin (FIL) consolidates above $1.60. However, recent volatility warns of quick corrections. The circulating supply is high, near 680 million FIL. This could increase selling pressure in the medium term. The supports at $1.52 and $2.08 remain crucial. They mark likely zones for stop orders or new market entries.
Price estimates for 2025 place an average of $2.71 for FIL. The expected range moves between $1.58 and $2.94. This maintains doubt about a full and sustained recovery. The next clear objective is to hold above $2.50 stably. If the price fails to do so, the bias will again favor downturns. The next sessions will confirm if the $1.60 break was a one-time bounce or the start of something bigger.
