Filecoin rallies 33% in 2 weeks after dipping to all-time lows

Filecoin (FIL/USD) was among the worst-hit tokens in January. After a sharp downtrend across the entire market, the coin hit an all-time low of $16.76, over 90% below its all-time high.

Following this poor performance, it now seems like Filecoin could be gearing up for a bullish run. In just two weeks, the coin has gained by around 33%.

Filecoin signals a strong recovery

Filecoin has been on a downtrend over the past several months. The coin failed to recover in November 2021 as the rest of the market peaked at new highs. Despite this massive downtrend, the coin is still fighting for a strong recovery.

The buying pressure in the market is currently high, and there is a high chance that the uptrend could persist. On February 8, Filecoin managed to climb to $26.07. It has slumped slightly from this level, and it was trading at $24.92 at the time of writing, following an 8.6% gain in 24 hours.

If the buying pressure persists, the next major resistance level lies at $34. From here, the coin can target $47 and go beyond $50, reaching a two-month high. The market support is increasingly becoming stronger, and so is the likelihood of FIL rebounding.

Filecoin has made a strong uptrend in previous market performances. Hence, a price rally towards $100 is likely if the bulls are still at play. Filecoin was last trading at three-digit figures in September.

Filecoin could form a new low

The volatility in the broader cryptocurrency market is high, and a strong and persistent bullish trend has yet to be established. Therefore, Filecoin could resume a downtrend and form a new low. Currently, traders are booking profits during the uptrend, and if there is a slight dip, sell-offs could start happening across the market.

If Filecoin dips, the next immediate support lies at $19. If more buyers fail to enter the market at this price, further dips towards $16 could be reported. A new all-time low will be set once Filecoin touches the $15 levels. A new low could ignite an uptrend if market support is high. If it lacks, it could doom the token to an even steeper downhill.

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