Surge in Trading Volume Signals Strong Institutional Interest
Filecoin (FIL) staged an impressive recovery after a steep decline, rebounding 6% from intraday lows near $2.18 to trade around $2.30. The move came alongside a sharp spike in market participation, with trading volume surging 75% above the 30-day average, highlighting strong institutional activity during the session.
The 4-hour chart shows FIL bouncing decisively from the green support zone between $2.10 and $2.20, an area that has historically attracted significant buying interest. The rebound helped the token reclaim short-term momentum after briefly dipping below the consolidation range.
Upside resistance remains visible near $2.80–$2.90, marked by the red supply zone. A breakout above this area would pave the way for a potential retest of the psychological $3.00 level. However, if sellers regain control, FIL could revisit the $2.20 support, which now serves as the critical demand zone for buyers.
Notably, Filecoin had previously broken out of a falling channel pattern in July, shifting its broader market structure from bearish to bullish. The latest rebound suggests that buyers are once again defending key levels, keeping the bullish narrative alive.
According to BITX strategist, “Volume-backed reversals often mark important inflection points. If Filecoin sustains above its demand zone, we could see a momentum-driven move toward higher resistance levels.”
The combination of heightened volume, strong support defense, and technical breakout patterns indicates growing confidence among market participants. For traders, the $2.20 zone will be crucial to watch, while a close above $2.80 could confirm a sustained bullish reversal.
With institutional interest rising and volatility creating fresh opportunities, Filecoin appears well-positioned to attract further attention in the coming sessions.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.