Filecoin surges 4% as institutional interest drives trading volume 40% above average

Filecoin (FIL) experienced a notable surge, rising as much as 4% within a 24-hour period. This upward movement was accompanied by a significant increase in trading volume, suggesting a heightened level of institutional interest in the cryptocurrency. The heavy trading volume, which reached 2.65 million tokens, far exceeded the usual 24-hour average of 1.89 million tokens, indicating substantial buying activity from institutional investors.

Market data reveals that Filecoin's price range over the past 24 hours was between $2.26 and $2.38, showcasing a 5% fluctuation. This volatility contrasts with the final hour's compressed range of just 0.47%. The trading activity during key support tests was particularly robust, with the volume exceeding 2.65 million units, which is 40% above the 24-hour average. This surge in trading volume aligns with the formation of strong support at the $2.29 level and resistance around $2.38. The critical $2.35 psychological level remains under pressure, highlighting the ongoing battle between bullish and bearish forces.

The rally in Filecoin coincided with a broader market uptick, as the Coindesk 20 index, a gauge of the wider crypto market, recently rose by 2.7%. This broader market strength likely contributed to the bullish sentiment surrounding Filecoin. In recent trading, FIL was up by 3.5% over 24 hours, trading around $2.36. This price level is significant as it indicates a sustained upward trajectory from overnight lows, with resistance establishing near the $2.38 level while maintaining support above $2.33 throughout the session.

Technical analysis further supports the notion of institutional buying, as the clear upward trend pattern from overnight lows suggests higher lows formation. However, a bearish divergence emerged in the final trading minutes, accompanied by a volume decline. This divergence could signal a potential short-term correction, but the overall trend remains bullish. The heavy volume and the formation of resistance at $2.38 indicate that institutional investors are actively accumulating Filecoin, which could drive further price appreciation in the near future.