Filecoin Breaks Key Support Amid Broad Market Sell-Off
Filecoin (FIL) extended its decline on Thursday, dropping more than 4.6% to around $2.36 and breaking through a key support level at $2.38, according to CoinDesk Research’s technical analysis model.
The token saw a sharp 24-hour trading range of over 6%, with heightened volume pointing to potential institutional selling pressure. The breakdown below support came during overnight hours, as volume surged to 7.54 million tokens. A descending channel formed in the final hour of trading, reinforcing the bearish trend.
Despite the pressure, FIL showed a brief recovery attempt, bouncing to $2.35 late in the session amid a spike in demand. Volume hit a short-term peak of 91,211 tokens, signaling renewed interest from buyers at lower levels.
The broader crypto market also moved lower, with the CoinDesk 20 index falling 3.6% over the same period.
Meanwhile, SingularityNET announced plans to use Filecoin’s Lighthouse protocol for metadata storage, highlighting ongoing development activity despite market volatility.
Technical Highlights:
- Support breached: $2.38 level broken with strong volume.
- Trend structure: Descending channel suggests continued weakness.
- Volume dynamics: Institutional-sized moves observed during selloff.
- Late bounce: Brief recovery attempt to $2.35 backed by rising demand.
