Filecoin [FIL] became the second-largest gainer in the entire crypto market over the last 24 hours, building on the bullish impetus it received recently.
The token representing the decentralized storage network pumped to $7.53 at press time, marking a jump of 16% in the 24-hour period, and a whopping 38% over the week, according to CoinMarketCap data.
Market gets excited over FIL
The price surge grabbed the attention of market participants, leading to a 217% spike in daily trading volume. In fact, FIL, which ranked 27th in market capitalization, was the 12th most-traded cryptocurrency in the last 24 hours.
Moreover, market sentiment towards FIL turned positive, as per AMBCrypto’s analysis of Santiment’s data. Such as spike in market sentiment was last seen six weeks ago.
The number of mentions of the coin on popular crypto-focused social channels also jumped, leading to greater awareness and possibly ownership.
While analyzing the price trajectory of FIL, popular technical analyst Ali Martinez flagged $8.5 as the next barrier for the coin.
Martinez forecasted,
“A successful break through this barrier could significantly bolster FIL‘s price, potentially tripling its value to reach $25.5.”
This was the trigger
The primary driver of the ongoing rally was the partnership with Solana [SOL], a heavyweight in the arena of smart contracts and decentralized apps (dApps).
As AMBCrypto previously reported, Solana would use Filecoin to store its blockchain history, thereby making it more accessible for users requiring historical access. The landmark deal reflected a move away from centralized storage solutions to blockchain-based alternatives.
Speculation on FIL rises
The price rally got derivatives traders interested. The Open Interest (OI) in FIL futures spiked to a 26-week high, according to AMBCrypto’s analysis of Coinglass’ data.
As of this writing, the OI was $345 million, after doubling in a week’s time.
The number of bullish bets taken for the coin increased, as evidenced by the Long/Short Ratio.
While majority of the positions were dominated by shorts, a continuation of the rally could cause the situation to flip.
Source : AMBCrypto by Aniket Verma / Feb 20, 2024