Filecoin price has gone parabolic recently, reaching its highest level since February, as artificial intelligence tokens rally. Summary Filecoin price surged to a multi-month high this week. The daily volume and futures open interest soared. The weighted funding rate has turned negative, pointing to a pullback. Filecoin (FIL) token jumped to the psychological point at $4, up by 585% from its lowest level this year. This surge has brought its market cap to $2.4 billion. It was the second-best performing major token this week after Internet Computer (ICP). Filecoin price jumped because of the renewed demand for AI tokens in the crypto industry. ICP jumped by 180% in the last seven days, while Artificial Superintelligence Alliance and Near Protocol rose by 60% and 40%, respectively. Filecoin is widely seen as an AI token because of its potential role in cloud data storage. Its cloud tools resemble those offered by large companies like Amazon AWS and Microsoft’s Azure. The only difference is that it uses a distributed approach where any user can provide their free space. Filecoin price also jumped as demand in the spot and futures market rose. Data showed that open interest in the futures market spiked to a multi-month high. It jumped to $440 million, up from the weekly low of $110 million. Filecoin’s volume also surged to over $8.45 billion, up from this week’s low of below $220 million. This is a sign of potential FOMO among investors. FIL price also soared as shorts were liquidated. These liquidations jumped to over $18 million. It is common for a token to jump when shorts are being liquidated. Still, more data shows that the funding rate has turned negative, which is usually a bearish sign. This number means that traders anticipate that the future price will be lower than the spot price. Filecoin price technical analysis FIL price chart | Source: crypto.news The daily timeframe chart shows that the FIL price has rebounded in the past few days. It jumped from the October low of $0.60 to $3.92, its highest level in months. FIL price has jumped above the 50-day and 100-day Exponential Moving Averages. It also moved above the 38.2% Fibonacci Retracement level and the descending trendline, which was part of the descending triangle. However, the token has become highly overbought as the Relative Strength Index and Stochastic Oscillator have moved to the overbought level. Therefore, it is likely that the token will retreat and retest the support at $2. A move above the resistance at $3.92 will invalidate the bearish view. Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
