Filecoin Drops by 6% Amid Heavy Trading Volume, Violates Key Support Level of $2.52

Key Insights:

Filecoin saw a 6% decline driven by heavy trading activity.
The price movement suggests a possible stabilization after the sharp downturn.

Filecoin, trading at $2.39, recorded a decrease of 5.8% over the past 24 hours, descending from a peak of $2.569 to a low of $2.406, as reported by CoinDesk Research’s technical analysis model. The token has identified support within the $2.41-$2.42 range, hinting at a potential consolidation zone after the recent drop.

As of now, Filecoin is available at approximately $2.425, reflecting a 4.9% loss. The broader market benchmark, the CoinDesk 20, registered a 2% decrease at the time of publication.

Technical Analysis Breakdown:

FIL-USD indicated a 5.8% decrease in the 24-hour frame, oscillating between $2.569 and $2.406.
Significant selling pressure was noted between 22:00-00:00 UTC, with trading volume exceeding 7 million units.
Support was eventually spotted in the $2.41-$2.42 range, forming a potential consolidation area after the significant decline.
A breakdown of the earlier support level at $2.52 occurred, which had previously held during the initial half of this period.
Current resistance is located at $2.56, where various rejection patterns emerged prior to the acceleration of the downtrend.
The high volume of sales indicates possible institutional distribution, suggesting a potential for further decline unless buyers can return to the $2.45 level.
Recent trading activities demonstrated notable volatility with a recovery attempt from the prior drop, reaching $2.427.
The highest trading volume during the upswing peaked at over 55,000 units, indicating significant buyer interest at support points.
The asset has currently settled within $2.415-$2.418, marking a possible short-term horizontal support zone.
Several rejection patterns appeared at the $2.420 resistance level, indicating caution moving forward before confirming a trend reversal.

Disclaimer:

Parts of this article were generated utilizing AI tools and subsequently reviewed by the editorial team to guarantee accuracy and adherence to our standards. For further details, visit CoinDesk’s full AI Policy.