Filecoin (FIL), a decentralized storage network, is extending its gains by 5% to trade around $6.20 on Monday after jumping more than 19% last week. The main reason for the increase is the announcement that Bithumb, the second largest exchange in South Korea, will add a new Filecoin trading pair on Monday. Moreover, on-chain data further supports the upside as FIL’s Open Interest (OI) and Total Value Locked (TVL) rise, hinting at further gains ahead.
Why is Filecoin going up today?
Filecoin price extended its gains by 5% on Monday after jumping more than 19% in the previous week. The main reason for the recent price increase is given below:
According to Wu Blockchain’s Twitter post, Bithumb, South Korea’s second largest exchange, will add a new Filecoin Korean won trading pair on Monday. This announcement allows investors to gain exposure to the original Filecoin token in the South Korean markets, which is a positive sign for the availability and liquidity of the token. This renewed interest is likely to attract investors and traders to the FIL token.
Technical outlook: FIL bulls target $8.4 mark
The price of Filecoin found support around the weekly level of $4.85 in mid-December and recovered 22% by the end of the month. At the time of writing on Monday, FIL continued to rise to around $6.20.
If FIL continues its uptrend, it could extend the rally by 35% to retest the 61.8% Fibonacci retracement level, pulled from the March 2024 high of $11.85 to the August 2024 low of $2.87 USD, to USD 8.42.
The Relative Strength Index (RSI) on the weekly chart stands at 56 after bouncing back from its neutral level of 50 on December 23, indicating an increase in bullish momentum.
FIL/USDT weekly chart
Another optimism for FIL bullish growth
Coinglass data shows that Open Interest (OI) in FIL futures on exchanges rose from $242.34 million on Wednesday to $358.30 million on Monday, reaching the highest level since December 9. A rising OI represents new or additional money entering the market and new purchases, suggesting further growth in the price of Filecoin.
Filecoin Open Interest chart. Source: Coinglass
In addition, data from crypto intelligence tracker DefiLlam shows that FIL’s TVL rose from $67.69 million on Tuesday to $93.12 million on Monday, steadily increasing since late December.
This increase in TVL indicates growing activity and interest within the Filecoin ecosystem. It suggests that more users are depositing or using assets within FIL-based protocols, adding credence to the optimistic outlook.
FILE TVL chart. Source: DefiLlama
