Filecoin rises 13% as buyers target $1.10 — short squeeze risk
Filecoin (FIL) jumped 13% to $1.05 with 24-hour volume surging to $314.6 million amid a shift in network strategy toward paid on-chain deals and stronger network economics. Market cap rose to roughly $769 million as buyers aggressively defended a support band near $0.87 after a bearish pennant breakdown. Technical indicators show early bullish signs: daily MACD is converging (MACD line toward -0.044, histogram ~0.022) while the 90-day Spot Taker CVD flipped to buy dominance, indicating sustained buy-side activity. Liquidity and liquidation heatmaps reveal dense leverage clusters above $1.10 and around $0.95 (notably ~322.69K near $0.98–$1.00), creating potential for a short squeeze if price clears $1.10. Immediate scenarios: a decisive break above $1.10 could accelerate upside toward $1.60 via short liquidations and higher liquidity targets; failure to hold above $1.00 risks renewed selling toward sub-$0.95 triggers. For traders: watch volume continuation, Spot Taker CVD persistence, and price action around $1.00–$1.14 to gauge whether this rebound is a durable recovery or a temporary bounce.
Bullish
The article describes a credible rebound driven by strong volume (24h $314.6M), a flip in 90-day Spot Taker CVD to buy dominance, and improving technical signals (MACD convergence). Those elements indicate genuine buy-side conviction rather than a low-liquidity bounce. Additionally, liquidity clusters and sizable leverage above $1.10 create a clear short-liquidation path that can amplify upside if price breaks resistance — a dynamic commonly seen in past squeezes when leveraged shorts cluster above resistance. Short-term impact: increased volatility and upside momentum if buyers sustain pressure above $1.00–$1.10; traders should expect sharp moves on leverage liquidations. Long-term impact: conditional — if on-chain demand (paid deals) continues and spot flows persist, FIL could form a stronger base and trend higher; if buying fades, the token can resume its corrective path toward sub-$0.95 levels. Key indicators to monitor: trading volume, Spot Taker CVD persistence, price reaction around $1.00–$1.14, and liquidation heatmaps.