• Filecoin (FIL) rose 13% on Tuesday, brushing shoulders with $3.7.
• A bullish technical formation was seen, potentially leading to a break out of the current consolidation range.
• The rise was fueled by the blockchains development team publishing ideas on how users can utilize the Filecoin Virtual Machine (FVM).
Filecoin (FIL) had a strong Tuesday, rising as much as 13% from lows of $2.95 to trade close to $3.7, potentially leading to a break out of the current consolidation range. The upswing appears to have been fueled by the news that the blockchains development team had published ideas on how users can utilize build on the Filecoin Virtual Machine (FVM).
On the four-hour chart, Filecoin (FIL) was trading at $2.98 with a negative bias. Bears were attempting to cut back some of the ground gained during December 27’s relief rally. The chart showed the decreasing volatility in Filecoin’s price as an ascending triangle appeared. The 50-day simple moving average (SMA) was flattening out and the Relative Strength Index (RSI) was moving sideways close to the midline, indicating consolidation of the price. The momentum strength at 48 also suggested that the buying and selling pressures were balancing each other out. In addition, the Moving Average Convergence Divergence (MACD) line was above the signal line, hinting at the possibility of further upside momentum.
The news of the development team published ideas on the FVM has been seen as the main catalyst for the price rise. The ideas range from apps and building blocks to systems and other projects. This is seen as a way of encouraging more users to build on the Filecoin platform and could lead to more gains in the price of FIL in the long term.
The current situation seems to support the idea that Filecoin (FIL) is on the verge of breaking out of the current consolidation range. If this happens, the crypto may see a 25% upside from the current levels. While the possibility of this happening is uncertain, it is important for investors to keep a close eye on the developments in the Filecoin space in order to make informed decisions.