Filecoin rebounds 13%: Will $1.10 trigger a FIL short squeeze?

Filecoin [FIL] has surged 13% to $1.05, at press time, as trading volume exploded to $314.6 million in 24 hours. This expansion aligns with the 2026 ecosystem strategy that prioritizes paid on-chain deals and stronger network economics. 

The network has shifted its focus toward driving real demand rather than relying solely on capacity metrics. As a result, market capitalization has risen to about $769 million, accompanied by growing participation.

Buyers have stepped in aggressively after the recent breakdown phase. However, FIL still trades within a broader corrective environment. 

The alignment between strategic narrative and capital inflows now strengthens the recovery case. Price expansion backed by $314.6 million in volume signals conviction rather than a low-liquidity bounce.

Pennant breakdown sparks rebound

After breaking down from a bearish pennant formation, Filecoin extended its decline toward the $0.87 support band. Sellers pushed the price below the lower channel boundary, confirming short-term weakness. 

However, bulls have reclaimed ground quickly and driven a rebound toward $1.05. This reaction suggests strong demand absorption near the highlighted support. 

The price now approaches the $1.10 resistance zone, which previously acted as structural support. If buyers sustain pressure above $1.05 and reclaim the resistance zone, upside continuation toward $1.6 becomes plausible. 

Still, failure to hold above $1 could invite renewed selling pressure. The rebound currently challenges the bearish continuation thesis that followed the pennant breakdown.

At the time of writing, MACD readings reflected early bullish convergence as downside pressure eases on the daily timeframe.

The MACD line has crossed upward toward -0.044, while the histogram has turned positive near 0.022. These shifts suggest improving internal strength despite the broader downtrend. 

Although the signal line remains below equilibrium at -0.066, buyers are gradually regaining control. This transition does not yet confirm a full reversal, but it underscores that selling intensity has weakened significantly since the pennant breakdown.

Filecoin spot buyers reclaim control

The 90-day Spot Taker CVD has flipped into Taker Buy dominance as of writing, confirming sustained aggressive buying activity. 

This shift reflects cumulative buy-side volume exceeding sell pressure over an extended horizon. Such positioning suggests conviction rather than short-term speculation. 

Additionally, trading volume has expanded by over 200% in 24 hours, reinforcing participation strength. 

Buyers now actively lift offers instead of waiting passively. This development strengthens the rebound narrative. 

However, sustained dominance must continue for the price to challenge higher resistance clusters. If aggressive spot flows persist, FIL could build a stronger structural base above $1.00.

Source: CryptoQuant

Liquidity clusters frame the next move

The Binance liquidation heatmap shows dense leverage clusters above $1.10 and around $0.95. Notably, around 322.69K in liquidation leverage appears near the $0.98–$1.00 zone. 

Overhead liquidity around $1.10–$1.14 creates a magnet for price expansion if buyers maintain pressure. At the same time, sub-$0.95 liquidity forms a downside trigger if support fails. 

This structure sets up a potential squeeze dynamic. Should price break above $1.10, short liquidations could accelerate upside movement. 

Conversely, rejection near resistance may expose $0.95 quickly. Liquidity positioning now defines the immediate battlefield between bulls and bears.

Source: CoinGlass

Can Filecoin extend recovery?

Filecoin currently challenges its breakdown narrative as strategic demand focus aligns with aggressive buying and improving technical structure. 

Price has rebounded strongly from support, and indicators show weakening downside pressure. Liquidity clusters now frame the next directional move. 

If buyers clear $1.10 decisively, upside continuation toward higher resistance would likely follow. For now, the rebound carries credibility, and the structure increasingly favors recovery over renewed breakdown for as long as the price doesn’t fall below $1.

Final Summary

• Filecoin challenged its bearish narrative as buyers defended key support and pressed toward overhead liquidity.
• Sustained strength above $1.00 would increasingly favor upside continuation over renewed breakdown pressure ahead.