Why Filecoin (FIL) Token Price Is Up Today

The post Why Filecoin (FIL) Token Price Is Up Today appeared first on Coinpedia Fintech News

While the broader crypto market slipped by 1%, Filecoin (FIL) made one of its biggest comebacks of the year. The decentralized storage token skyrocketed nearly 60% in just 24 hours, jumping from $1.38 to $2.18, its sharpest recovery since early 2024.

This sharp rally has stunned everyone, wondering the key reasons why Filecoin token is up today?

DePIN and AI Storage Hype Sparks Rally

One of the main reasons behind Filecoin’s sharp surge is the upcoming DePIN Day on November 18, a major event for the decentralized infrastructure sector. Meanwhile, experts are speculating that Filecoin could announce key updates or partnerships.

At the same time, FIL its growing role in AI projects like SingularityNET, which use Filecoin’s decentralized storage for training data, has boosted investor confidence and strengthened its position in the AI-powered DePIN ecosystem.

Short Squeeze Triggers Rapid Price Jump

The rally wasn’t purely organic. Futures data shows a massive short squeeze played a key role. Open interest doubled to $110 million, while trading volumes spiked 300% to $237 million in a single day.

As bearish traders scrambled to cover their positions, buying pressure pushed prices even higher, a classic chain reaction in crypto markets.

Technical Breakout Confirms Bullish Shift
Technically, FIL recently formed a bullish engulfing pattern on the weekly chart, signaling a strong momentum shift in favor of buyers. Breaking past key resistance at $1.40, the token triggered more buying activity and short covering, extending the rally further.

What’s Next for FIL?

With rising attention from AI developers and DePIN investors, Filecoin’s current momentum could continue in the short term. Analysts suggest that if adoption and trading activity remain strong, FIL could target $2.5–$3 in the coming weeks.

However, with the RSI at 86 , FIL is currently in overbought territory, hinting at a possible short-term pullback. If selling pressure emerges, $2.00 and $1.27 could act as key support zones before the next potential leg higher.

As of now, Filecoin trades near $2.15, up 59% in 24 hours, with its market cap touching $1.52 billion.