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.
The recent 6% drop in Filecoin's price, accompanied by substantial trading volumes of late suggests some technical reevaluation may be taking place. Key support levels such as $15-$20 will now determine the downside trend for FIL and serve a testament to its long-term stability.
Recent heavy trading volume resulted in a 6% plunge for Filecoin, raising concerns about potential bearish sentiment. Technical analysis reveals key support levels at $80-95 range; however cautious observation of subsequent market behavior will be crucial to predict an upturn or further dip.
The recent 6% dip in Filecoin’s price amidst heavy trading volume suggests a sharp market correction. Technical indicators reveal potential support levels on the horizon that could provide resilience to this cryptocurrency's downward trend, albeit likely with increased volatility.
The sharp 6% drop in Filecoin's price on heavy trading volumes signifies a rapid market shift, indicating that technical analysis must be revisited to identify potential support levels amidst the current sentiment and asay further exclusion of participants from recent high-price corridor.
