Filecoin drops as bears test support

Filecoin FIL$1.2311 retreated 2.2% over 24 hours, slipping from $1.32 to $1.29 as technical sellers dominated price action.

The decentralized storage token established a clear bearish channel pattern with successive lower highs confirming downward momentum across the 5 cent trading range, according to CoinDesk Research's technical analysis model.

The model showed that volume activity told the real story. Trading exploded to 7.59 million tokens yesterday evening, 180% above the 24-hour average.

This surge coincided with selling at the $1.33 resistance level, marking clear institutional distribution, according to the model.

With no fundamental catalysts driving price action, technical levels became the primary battleground. The swift recovery from $1.28 support demonstrates institutional buyers remain active despite the prevailing bearish channel structure, the model said.

The weakness in FIL came amid a decline in wider crypto markets. The CoinDesk 20 index was 3.1% lower at publication time.

Technical Analysis:

• Critical support holds at $1.28 following intraday liquidation event
• Key resistance barrier at $1.33 where institutional selling emerged
• Peak volume spike to 7.59 million tokens confirms major distribution activity
• Descending channel pattern shows successive lower highs confirming bear trend
• V-shaped reversal from $1.28 proves institutional accumulation appetite
• Immediate upside target at $1.31-$1.32 offers 3.5% gain potential
• Break below $1.28 key support opens path to $1.26 extension
• Current risk/reward favors long positioning with stops below $1.2800

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.