Filecoin (FIL) Price Drops Below Key Support as Bearish Momentum Builds

Filecoin (FIL) has broken below its crucial support level of $2.54, dropping 4.87% over the past 24 hours and trading at $2.38, according to CoinDesk Research’s technical analysis. The decline aligns with broader market weakness, as the CoinDesk 20 Index also fell 2.6% during the same period.

FIL’s downward move reflects growing market uncertainty, with investors reacting to macroeconomic headwinds and risk-off sentiment across both crypto and traditional assets. After opening at $2.62, Filecoin gradually declined to $2.50, marking a $0.127 loss within a single day.

High-volume activity occurred at 07:00 and again at 13:00, the latter corresponding with a failed breakout at the $2.55 resistance level. Shortly after, at 13:31, the price sharply dropped from $2.55 to $2.50. A surge in trading volume at 13:45—108,967 FIL units traded—intensified the selling pressure, leading to a nearly 1% decline in minutes.

Attempts to form short-term support at $2.51 repeatedly failed, with each rebound encountering fresh selling. Momentum indicators suggest ongoing weakness, with a potential retest of the $2.48–$2.45 range likely if current trends persist.

The breakdown of the $2.54 support level, which had previously held through multiple tests, signals a shift in market sentiment. With volatility rising and volume confirming the move, traders are watching closely for signs of stabilization—or further downside.

As Filecoin struggles to regain footing, the next few sessions will be critical in determining whether bulls can defend lower support levels or if bears continue to dominate the price action. Investors should monitor key technical zones and volume trends for cues on potential reversal or continuation.