Filecoin Price Forecast: FIL eyes up $50 target if this critical level cracks

• Filecoin price has established a descending triangle pattern on the 4-hour chart.
• The pattern is on the verge of a significant 18% breakout towards $50.
• If YFI bulls can hold a key support level, the likelihood of a breakout would increase significantly.

On February 8, Filecoin price had a massive 110% rally in just two days hitting $51.96 and eventually another all-time high at $53 that didn't see any kind of continuation moves. The digital asset seems ready for yet another leg up if a key support level holds.

Filecoin price on the cusp of a breakout

On the 4-hour chart, Filecoin has established a descending triangle pattern. There is a crucial support level formed around $42.75, which coincides with the 50-SMA and the 26-EMA. The resistance trendline is located at $43.2.

FIL/USD 4-hour chart

A breakout above $43.2 will drive Filecoin price towards $50, an 18% move calculated using the maximum height of the pattern as a reference point. 

FIL/USD 4-hour chart

On the other hand, failure to hold the critical support level at $42.75 would lead Filecoin price towards the lower trendline of the descending triangle at $41. A breakdown below this point will easily push the digital asset down to $34, a price target that coincides with the 100-SMA.

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