Filecoin (FIL) Price Analysis: Short-Term Recovery Sets Sights on $3.40 Rally Target

FIL bulls are mounting a comeback—technical indicators suggest this decentralized storage token could surge toward $3.40 in the coming sessions.

Breaking Down the Momentum

Recent price action shows FIL shaking off bearish pressure as buying volume accelerates. The $3.40 target represents a key resistance level that, if breached, could trigger further upside movement.

Traders are watching for sustained momentum above critical support levels. The recovery pattern mirrors classic accumulation phases seen before previous FIL rallies—though whether this is genuine demand or just another crypto pump remains the billion-dollar question.

Market participants should watch for confirmation signals before jumping in. After all, in crypto, what goes up must come down—usually right after you've bought the top.

Filecoin Technicals Suggest a Short-Term Recovery

From the technical perspective, FIL is observed to be in a long-term downtrend from mid-2021 to 2025. Bollinger Bands provide strong indications of high volatility, especially in the latter part of 2022 and early 2024, where the peaks almost touched the top band. Recently, the price made a strong recovery from $1.34 to $1.63.

Source: TradingView

The RSI is approximately 41.40, indicating that the market is slightly bearish. However, the MACD is still below its signal line, although a convergence of the histograms is a sign of a possible bullish crossover. The market is experiencing a cautious recovery trend, possibly preparing for a reversal or a continuation of its bear trends.

Filecoin (FIL) Bulls Eye $3.40 as Sell Walls Disappear

Moreover, the crypto analyst, CW, noted that the heavy sell walls that had restricted the price of FIL prior to this development have now largely dissipated, implying that the market is experiencing a revival of positive momentum. Once the price is able to break through the strong level of resistance at $1.75, a resumption of positive price momentum is likely.

Source: CW

Currently, the price of FIL is being supported by a buy wall, a significant region of good strength that can drive the price to its next key target of $3.40. According to market analysts, such levels of support usually drive the price to sudden high levels, especially when trading activities increase.

Also Read: Filecoin Onchain Cloud Boosts Outlook as FIL Eyes $200 Mega Rally