Filecoin Plunges 6% on Heavy Volume: Technical Analysis and Potential Support Levels
According to CoinDesk Research's technical analysis model, Filecoin (FIL) experienced a notable 5.8% decline over the 24-hour period, dropping from a high of $2.569 to a low of $2.406. The token found support at the $2.41-$2.42 range, forming a potential consolidation zone after the sharp decline.
The technical analysis reveals a breakdown of the $2.52 support level that had previously held during the first half of the period. Resistance is now established at $2.56, where multiple rejection wicks formed before the downtrend accelerated. The high-volume selling suggests institutional distribution and potential further downside unless buyers can reclaim the $2.45 level.
In the last hour, FIL-USD demonstrated notable volatility with a recovery attempt from the previous correction. Price action formed a V-shaped pattern, initially dropping to a low of $2.411 before staging a significant rally to reach $2.427. Volume peaked during the upward movement at over 55,000 units traded, suggesting strong buying interest at support levels.
Since then, the asset has consolidated between $2.415-$2.418, establishing a potential short-term horizontal support zone. Multiple rejection wicks formed at the $2.420 resistance level, indicating potential stabilization following the earlier decline. However, modest volume in the final minutes suggests caution before confirming a trend reversal.
The broader market gauge, the CoinDesk 20, was 2% lower at publication time. The current trading price of Filecoin is around $2.425, which is 4.9% lower than its previous high.
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.
