Filecoin fell 2% to $1.28 on Wednesday, following the trends in the wider crypto market rather than specific developments related to the token.
The price movements of the token remain closely aligned with the general sentiment in the crypto market, as indicated by CoinDesk Research’s technical analysis model. This close relationship shows that significant order flows are driving the price changes, rather than fundamental factors affecting Filecoin, according to the model.
The overall crypto market benchmark, the CoinDesk 20 index, was down 0.6% at the time of publication.
Filecoin’s trading volumes further highlight the trend of consolidation, with 24-hour activity recorded at 7.3% above the weekly average, signaling measured interest, according to the model.
Additionally, the model indicates that volume patterns support range-bound trading as participation does not meet the levels needed for breakouts. The observed increase signifies accumulation rather than the aggressive positioning typically seen before major market shifts.
Technical Analysis:
- Key support remains at $1.27, with resistance firmly set at $1.35 from volume-driven peaks.
- Activity in the last 24 hours was 7% above the weekly average, indicating steady involvement from large holders, with an 85% volume spike observed during the test of $1.35, confirming significant resistance.
- The formation of higher lows, from $1.266 to $1.276, within a $0.087 range, suggests an accumulation phase is underway.
- The immediate upside target is positioned between $1.285 and $1.290 based on range expansion, with broader resistance at $1.35 requiring a volume increase to be surpassed.
Disclaimer: Parts of this article were generated with the help of AI tools and reviewed by our editorial team to ensure accuracy and compliance with our standards. For more details, refer to CoinDesk’s full AI Policy.
