Filecoin slides 5% alongside major decline in broader crypto market

Filecoin FIL$1.2998 broke through critical technical support on Monday, with the token dropping 5.1% to $1.24 as a massive volume surge signaled institutional selling pressure, according to CoinDesk Research's technical analysis model.

The broader crypto market fell sharply as well, with bitcoin registering a 3.5% decline and the CoinDesk 20 4.4%.

Trading volume exploded to 11.74 million tokens, nearly 400% above normal levels, as bears overwhelmed buyers at the $1.25 support zone, according to the model.

The model showed that the selling accelerated in recent hours, with three consecutive lower lows confirming the technical structure collapse.

The breakdown opens the door to deeper losses toward $1.23, with resistance now cemented at $1.25 former support.

Technical Analysis:

• Primary resistance cemented at $1.35 following failed recovery attempts
• Critical support breach confirmed at $1.245
• Next major demand zone targets $1.23-1.235 range based on prior structure
• Ascending trend support failure opens door to deeper retracement levels
• Exceptional volume surge of 380% above average confirms breakdown validity
• High-volume breakdown suggests institutional participation rather than retail selling
• Key resistance for any relief rally: $1.25 former support level

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.