Filecoin ($FIL) is showing solid momentum with a +2.5% surge over the past 24 hours and +11% gains this week. The breakout tells an interesting story when you dig into the technicals.

The price just shattered through a descending wedge pattern—textbook bullish signal. More importantly, exchange reserves have dried up by 10% over the last month, suggesting holders are moving coins off platforms rather than selling into weakness. That's typically a supply squeeze indicator.

On the horizon, the Filecoin Cloud upgrade is coming, which could be a catalyst. Adding fuel to the fire: open interest is climbing while funding rates have turned negative. This is the exact setup traders watch for—when shorts are underwater and longs keep piling in, a squeeze becomes increasingly likely.

The upside target sits above $2.00, with $1.45 acting as the key support level to monitor. If that holds, the structure remains intact for further moves up.