Filecoin (FIL) price is currently trading near $1.47, and its chart is exhibiting a pattern reminiscent of past cycles for long-time observers. An analyst on X, known as Altcoin Pioneer, has highlighted a striking observation on the 3-week timeframe. The price is hovering around the same descending channel support that has historically guided every major cycle low since 2018. This clean, slanted boundary extends from the early trading years into 2025, and current price candles are once again touching this line.
A similar interaction with this support level occurred prior to the explosive rally that propelled FIL to over a 1,000% gain during the 2020 cycle. The current chart mirrors this historical structure. A clear "Bottom 1" was formed around $2.50 in 2022. A second low, "Bottom 2," is now developing almost precisely along the same channel support. These two points collectively form a classic double-bottom pattern. Altcoin Pioneer notes that this zone typically emerges when selling pressure is exhausted and when price action is compressing within a wide macro channel.
FIL Token Sits on a Double-Bottom Setup Closely Watched by Traders
The current price behavior of Filecoin leans on a pattern widely considered one of the most reliable reversal signals. Trading volume is currently near its 2023 lows, which Altcoin Pioneer interprets as an indicator of dwindling downward momentum. The neckline for this structure is situated around $3.20. A sustained move above this level would complete the pattern and suggest a potential move towards the upper portion of the long descending channel.
The historical price action of the FIL token supports this type of compression. During the previous cycle, a similar squeeze preceded a surge through the mid-range of the macro channel, which then led to a multi-month rally. The Relative Strength Index (RSI) on the chart is also near 28, an area that has historically marked conditions where longer-term holders have re-entered the market. The Moving Average Convergence Divergence (MACD) histogram shows a slight upward curl, indicating early divergence that typically forms at broader cycle lows.
Filecoin Token Tests Conditions That Fueled its Major 2020 Expansion
The analysis from Altcoin Pioneer captures more than just pattern recognition; it reflects how markets behave when strong technical structures coincide with improving fundamental developments. Filecoin's advancements in storage usage support this notion. Active deals have grown by over 220% year-to-date, and the total value locked is currently around $600 million. These developments often strengthen a token's foundation, especially when its price is trading at multi-year support levels.
The FIL token has previously experienced prolonged compression phases before its significant breakout in the last cycle. The current structure recreates a similar blend of oversold readings, declining volume, and interaction with long-term support that preceded that rally. A breakout above $3.20 would initially target the mid-channel region, potentially between $4.50 and $8. A more robust upward shift could open the possibility for higher mid-cycle levels, ranging from $12 to $20 over time. Altcoin Pioneer identifies $1.40 as the critical invalidation area for this bullish outlook; a monthly close below this point would break the current structure and negate the double-bottom narrative.
Filecoin's price movement is currently situated within a technical setup that has historically signaled major trend shifts. The double bottom formation along a multi-year channel does not guarantee a repeat performance. It merely recreates an environment that previously led to a powerful rally. Traders of the FIL token often monitor these moments closely because they represent a confluence of technical structure, market exhaustion, and historical precedent.
Filecoin is positioned at a level where markets often determine their direction for the upcoming months. The next few weeks will reveal whether this setup leads to a breakout or a consolidation phase. The chart presents a compelling narrative regardless of the outcome, and the comparison to the 2020 structure lends significant weight to the current moment. Curiosity remains a key sentiment as FIL approaches another technical crossroads.