Filecoin (FIL) has surged 13% to trade at $1.05, accompanied by a massive spike in 24-hour trading volume to $314.6 million. This rebound comes after the token defended key support levels following a recent breakdown from a bearish pennant formation, which had pushed prices toward the $0.87 zone.
Technical analysis reveals a clear Fibonacci retracement structure that provided a foundation for the bounce. The 0.5 and 0.618 Fibonacci levels, at $0.986 and $0.958 respectively, formed a critical support cluster where buyers aggressively stepped in. FIL briefly dipped toward this zone before showing strong buying pressure, with the 0.382 level at $1.00 acting as secondary support. The token's ability to hold above the 0.5–0.618 zone is viewed by analysts as a sign that the market still favors upward momentum.
The immediate upside target for FIL is around $1.17, representing the next major resistance level. However, the $1.10 zone is a crucial near-term hurdle, as it previously acted as structural support and now contains significant liquidity. Liquidation heatmaps from Binance show dense leverage clusters above $1.10 and around $0.95, setting up a potential short squeeze dynamic. A break above $1.10 could trigger liquidations and accelerate upside movement toward $1.6.
Market data supports the technical recovery. FIL's market capitalization has risen to approximately $769 million, and the token has posted a seven-day gain of 8.7%. On-chain metrics show the 90-day Spot Taker CVD has flipped into Taker Buy dominance, confirming sustained aggressive buying activity rather than short-term speculation. The MACD indicator on the daily timeframe also shows early bullish convergence, with the histogram turning positive.
This price action aligns with Filecoin's 2026 ecosystem strategy, which shifts focus toward driving real demand through paid on-chain deals and stronger network economics, moving beyond mere capacity metrics. Analysts suggest that a sustained hold above the $0.958–$0.986 support zone would confirm buyer confidence, making a move toward $1.17 more likely. However, failure to hold above $1.00 could invite renewed selling pressure.
