• Filecoin (FIL) displayed strength on Tuesday rising as much as 13% from lows of $2.95 to brush shoulders with $3.7.
• This upswing appears to have been fueled by the news that the blockchains development team had published ideas on how users can utilize build on the Filecoin Virtual Machine (FVM).
• Filecoin was hovering at $2.98 on the four-hour chart with a negative bias, as bears focused on cutting back some of the ground gained during December 27’s relief rally.

In recent trading on Tuesday, Filecoin (FIL) displayed strength as it rose as much as 13% from lows of $2.95 to brush shoulders with $3.7. This upswing appears to have been fueled by the news that the blockchains development team had published ideas on how users can utilize build on the Filecoin Virtual Machine (FVM). This news has caused a wave of excitement among cryptocurrency investors and traders alike, who are now eagerly awaiting potential gains in the coming days.

In terms of technical analysis, Filecoin was hovering at $2.98 on the four-hour chart with a negative bias, as bears focused on cutting back some of the ground gained during December 27’s relief rally. The four-hour chart reinforced the decreasing volatility in Filecoin’s price as an ascending triangle appeared on the chart. This formation is often used as a reliable indicator of a potential breakout, and with the 50-day simple moving average (SMA) flattening out and the Relative Strength Index (RSI) moving sideways close to the midline, it appears that Filecoin could be on the cusp of a break out.

Going forward, it will be interesting to see how the market reacts to the news of Filecoin’s potential use cases. If the bullish momentum continues and investors continue to jump on board, it could be possible for Filecoin to break out of its current consolidation range and set new all-time-highs in the near future. On the other hand, if the current bearish sentiment remains and the market fails to capitalize on the potential of Filecoin, the price could fall back to its previous support levels. In either case, it will be interesting to watch what happens over the coming days and weeks.