In the cryptocurrency world today, attention is turning to altcoins as Bitcoin's dominance decreases. Filecoin (FIL) stands out in this context, showing strong growth.
Current Filecoin Analysis
Filecoin (FIL) is trading within a descending triangle pattern that has been holding since April 2022. After rebounding from the $3.40 level, FIL is gaining traction and positioning near a key breakout level of $6.00, where the descending trendline resistance lies.
Filecoin Breakout Prospects
A confirmed breakout could occur if the price surpasses the next resistance level of $6.73, paving the way for targets of $10.45 and $12.33. These levels represent a potential 105% increase from its current price. If momentum remains strong, the mid-term target could reach $28.00.
Altcoins Ready for a Rally
FIL's proximity to the breakout zone coincides with broader altcoin rallies. Altcoins like Algorand (ALGO) and Stellar (XLM) have already shown significant upward momentum, and Filecoin could follow suit by benefiting from improving market sentiment. The recent decline in Bitcoin dominance may serve as a catalyst for a liquidity shift to altcoins. The Relative Strength Index (RSI) on the daily chart has climbed to 77.98, indicating strong buying pressure, although caution is advised as the asset approaches overbought conditions.
Filecoin exhibits potential for further growth against the backdrop of fading Bitcoin dominance and positive altcoin market sentiment.
