Filecoin (FIL) Price Breaks Key Support as Heavy Selling Pressure Hits Crypto Market

Filecoin (FIL) came under renewed selling pressure on Monday after breaking through a critical technical support level, signaling growing bearish momentum across the broader crypto market. The token fell by roughly 5.1%, sliding to around $1.24 after failing to hold the important $1.25 support zone. According to CoinDesk Research’s technical analysis model, the move was accompanied by an exceptional surge in trading volume, pointing to strong conviction behind the sell-off.

Trading volume spiked to approximately 11.74 million FIL, nearly 400% above average levels. This sharp increase suggests that the breakdown was driven by large-scale participants rather than retail traders. Heavy volume during a support breach often confirms the validity of the move, and in this case, bears decisively overwhelmed buyers who had previously defended the $1.25 area.

The weakness in Filecoin mirrored broader market conditions, as cryptocurrencies declined sharply during the same session. Bitcoin dropped about 3.5%, while the CoinDesk 20 Index fell roughly 4.4%, highlighting widespread risk-off sentiment among investors. As market pressure intensified, Filecoin recorded three consecutive lower lows, reinforcing the view that its technical structure has deteriorated.

With the loss of ascending trend support, analysts now warn that further downside is possible. The breakdown opens the door to a move toward the $1.23–$1.235 zone, an area that previously acted as a demand region based on historical price structure. Meanwhile, former support around $1.25 has now turned into a key resistance level, meaning any short-term rebound could face selling pressure near that price.

Additional resistance is also firmly established near $1.35, following multiple failed recovery attempts. Until Filecoin regains these levels with strong volume support, the outlook remains cautious. The high-volume nature of the decline reinforces the idea of institutional participation, adding weight to the bearish signal.

Overall, Filecoin’s technical breakdown, combined with broader market weakness, suggests that traders should closely monitor support zones and volume trends as the market searches for stability.